OpenAI has been hit with a trademark lawsuit over the name of its new flagship 'Astra' AI model, filed by a California software company that says it has been using the name since 2021 and now risks looking like the copycat.
TradeSun Inc., based in Del Mar, California, filed the lawsuit on October 5, 2026, in the U.S. District Court for the Northern District of California. The company says its Astra software — which uses AI agents to analyze trade documents for banks and other financial institutions — has carried the name for more than five years, and that it secured a federal trademark registration in 2022. OpenAI launched its own Astra model on September 3, 2026, and has since expanded the name into specialized products, including Astra for Law, aimed at law firms and legal technology companies.
At the heart of the case is what trademark law calls 'reverse confusion.' TradeSun argues that OpenAI's vastly larger market presence will cause customers to associate the Astra name primarily with OpenAI, leaving the earlier user of the name looking like the imitator. 'By saturating the market with Astra, OpenAI is teaching the public that Astra means OpenAI,' the complaint states. The risk is heightened, TradeSun says, because both companies sell artificial-intelligence products to business customers in overlapping areas such as document processing and data extraction.
Founder and CEO Nigel Hook said TradeSun built Astra from the ground up and has invested in its technology, customers, and brand for more than five years. The complaint also argues that OpenAI — which registers and enforces trademarks of its own — could have identified TradeSun's federal registration before adopting the name. TradeSun is seeking unspecified monetary damages and a court order blocking OpenAI from using the 'Astra' name. OpenAI did not immediately respond to a request for comment.
The suit adds to a growing pile of naming disputes for the AI giant. OpenAI has also faced trademark lawsuits over its Sora video-generation app, its Cameo digital-likeness product, and plans for 'io'-branded devices — it has since dropped the 'io' name and settled its dispute with wearable tech company iyO. OpenAI also scrapped an updated Astra model later in September amid safety concerns, though the flagship name remains in use.
The case, TradeSun Inc v. OpenAI Opco LLC, will test whether a small, earlier trademark holder can hold its ground against one of the most valuable private companies in the world — and whether courts will treat the AI industry's breakneck product launches as an excuse for skipping basic trademark clearance.