Legal action is being taken by the Ethereum gaming firm Ex Populus against Elon Musk’s artificial intelligence company, xAI. It has been alleged that widespread market confusion was caused by the name similarity.
A lawsuit for trademark infringement has been filed against Elon Musk’s artificial intelligence company xAI by the Ethereum-based gaming network. The lawsuit was announced by the Ether gaming firm behind the network, Ex Populus, on its X platform and its community forum.
It was said by the official account that “with increased confusion around Elon Musk’s AI company, it’s a big responsibility to safeguard the brand that the community trusts.”
Launched in 2021, Ex Populus is a game production and publishing company that has a focus on blockchain-based gaming, specifically in the Ethereum ecosystem.
In 2023, a platform called Xai was developed by the company to enable video game developers to make use of AI-driven gaming solutions and autonomous software systems across multiple platforms. As of late, this platform has been mistaken for Elon Musk’s own artificial intelligence company, which he dubbed xAI.
XAI Lawsuit Alleges Trademark Infringement by Elon Musk’s xAI
According to the document, a lawsuit was filed by Ex Populus on the grounds of trademark infringement, unfair competition, false designation of origin, and unfair business practices. It claims that the trademark has been registered since June 2023, which protects it under common law rights.
Despite the trademark, the name has been continued to be publicly used by Elon Musk to refer to his artificial intelligence company that is linked to the X social media platform. In July 2023, it was announced by Elon Musk that he would create a new artificial intelligence and technology company that he named “xAI.”
As a result, Ex Populus’ network began to be mistaken for Musk’s AI gaming venture by many traders. As the post had already reached more than 36 million viewers, consumer confusion was amplified between the two brands. Not to mention, it was mistakenly told to users by X’s own AI assistant, Grok, that the social media account for the Ex Populus network was linked to Musk’s AI company.
It was written by the company in the lawsuit filing that “Consumers familiar with Plaintiff’s XAI brand and its established reputation in the video gaming industry instantly began inaccurately conflating Plaintiff with Musk’s/Defendants’ “xAI” company.”
Analyzing the Latest Price Movements of XAI
After news of the lawsuit against Musk went viral, a drop in value was experienced by the native token. On August 25, a 5.16% drop from its previous daily peak was experienced by the token. It is currently being traded at $0.0499.
A sharp rejection and a highlighted drop zone indicate that bears remain in control for the short term. If this level fails to hold, the next significant support, which could be around the $0.047–$0.048 range, will continue to be dived even lower.
The Relative Strength Index currently sits at 36.89, which is close to the oversold zone. This indicates that bearish momentum is strong but could be nearing exhaustion. The RSI has been trending below its moving average, reflecting sustained weakness. However, with RSI nearing oversold territory, a short-term relief bounce is possible if buyers step in.
