Nvidia and Microsoft have been sued in a Texas court by Xockets, a Texas-based technology company. The complaint, filed on Thursday 5 in federal court in Waco, accuses the two companies of stealing data processor technology that is critical to the development of artificial intelligence (AI) products.
Xockets claims the two tech giants violated its patents by using its ‘data processing units’ (DPUs). The company also accused them of conspiracy, arguing that they worked together with RPX, a patent management company, to undercut technology prices through anti-competitive practices.
The Texas company, founded in 2012, explained that its technology allows computer systems to perform tasks more efficiently by freeing up capacity on server processors. The DPUs created by Xockets are, according to the lawsuit, used in the data centres that Nvidia and Microsoft employ to develop and run AI systems.
Xockets said it tried to license its technology to Nvidia and Microsoft, but the companies rejected its proposals and instead chose to channel any negotiations through RPX. The plaintiff firm accused the three companies of conspiring to profit from its technology without fair compensation.
The lawsuit also seeks monetary damages for treble damages, as well as an injunction prohibiting the sale of products that Xockets claims infringe its patents. The small company said Nvidia and Microsoft used their market power to pressure and diminish the value of its innovation.
According to Reuters, Nvidia declined to comment on the case, while Microsoft and RPX did not immediately respond to requests for information. Both companies have played a key role in the artificial intelligence revolution, with Nvidia providing the hardware and Microsoft leading investment in generative AI, including collaborations with OpenAI.
The resolution of the case could have a significant impact on the AI industry, as the lawsuit involves not only patent infringements, but also possible anti-competitive practices in a key sector for the future of technology.
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