Startup Accuses Nvidia and Microsoft of Patent Infringement in AI Chip Technology

Thursday, 5 September 2024, 11:35

Startup Xockets is suing Nvidia and Microsoft over patent infringement related to AI chip technology. The lawsuit alleges that Nvidia's DPU technology, acquired through Mellanox, directly infringes on Xockets' patents. Additionally, Microsoft is accused of benefiting from this infringement as an Nvidia customer. This case raises significant concerns about competitive practices in the AI segment.
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Startup Accuses Nvidia and Microsoft of Patent Infringement in AI Chip Technology

Legal Battle Over AI Chip Innovations

In an intriguing legal development, a Texas-based startup, Xockets, is taking Nvidia and Microsoft to court, alleging that the tech giants have infringed on patents pertaining to essential AI chip technology. The complaint centers around Xockets' patented data processing unit (DPU) technology, which optimizes cloud infrastructure by enhancing data-intensive computational tasks.

Claims of Patent Infringement

Xockets asserts that Nvidia, following its 2020 acquisition of Mellanox, has illegally utilized its patented technology. The startup points out that three Nvidia GPUs—BlueField, ConnectX, and NVLink Switch—are based on its innovations. Furthermore, the lawsuit alleges that Microsoft, as a customer of Nvidia, has gained privileged access to infringing GPU-enabled systems for AI.

Efficient Infringement Allegations

This lawsuit reflects broader concerns within the tech industry regarding the practices of large corporations adhering to what Xockets terms 'efficient infringement'—a strategy that involves ignoring patents in favor of immediate profits. Xockets claims its CEO informed Nvidia of these patent infringements as early as February 2022.

Implications for the Tech Industry

This case not only impacts Xockets but also raises important questions about patent rights, competitive practices, and the ethical responsibilities of major tech corporations in the AI landscape. As the trial unfolds, the tech community will closely monitor its outcomes.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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