Xockets sues Nvidia, Microsoft for patent infringement, antitrust violations

Nvidia and Microsoft are being sued by Xockets for copyright infringement and antitrust violations related to AI data processor technology.

Xockets, a company based in Texas, has sued Nvidia and Microsoft for using its data processor technology to make AI goods without permission.

The lawsuit was filed in Waco, Texas, and also says the companies broke antitrust rules. The company Xockets wants triple damages and a court order to stop selling the goods that break the law. It was claimed that Nvidia and Microsoft stole data processor technology from a small Texas company in order to help develop AI goods. The companies were sued in a US court on Thursday.

In the lawsuit, which was brought in federal court in Waco, Texas, plaintiff Xockets said that Nvidia and Microsoft were breaking patents all the time. They also broke antitrust law by working together with RPX, a patent risk management business, and Xockets to fix the price of Xockets’ technology and make it less valuable.

Patents board member Robert Cote said in a statement that Nvidia and Microsoft are abusing their market and dominance power in AI to try to get others to pay little or nothing for the ideas that are used in their products.

Nvidia didn’t want to say anything. Microsoft and RPX, which is also a suspect, did not answer right away when asked for comment.

AI Partnership Between Microsoft and Nvidia

Microsoft has put billions of dollars into a relationship with OpenAI, the company that makes ChatGPT and has become the face of generative AI. Data centres use Nvidia’s hardware to help build and run AI systems.

According to Xockets, its ideas for data processing units (DPUs) are key parts of some Microsoft and Nvidia systems. It said that its technology lets computers do some jobs faster and without using up too much server processor power.

The claim said that Xockets tried to get Nvidia and Microsoft to license its technology, but the three companies agreed that any talks about licensing would go through RPX. According to Xockets, it wants triple damages that aren’t specified and a court order that stops the sale of products that supposedly have technology that violates patents.