Trademark infringement covers more than exact copies; it also covers things that are “similar.”
There is some gray area, but the larger and more well known the company is,
the less gray area there is.
Nike is a huge, well known, global company with very strong trademarks.
When people see “N1KE,” most would think “NIKE.”
Trying to develop names that are very similar to large, well established companies is inviting problems.
The name should not be developed and does not have value.
Good luck.