A startup backed by prominent figures in the tech industry has brought a lawsuit against tech giants Nvidia and Microsoft, accusing them of infringing on its patented technology related to AI chips. Xockets, based in Texas, claims that Nvidia has violated its patent for data processing unit (DPU) technology, which plays a crucial role in optimizing cloud infrastructure by accelerating data-heavy tasks. The infringement is said to have originated from Nvidia’s acquisition of Mellanox in 2020, with Xockets alleging that the chip giant adopted its patented technology without authorization.
Xockets specifically points to three of Nvidia’s DPUs – BlueField, ConnectX, and NVLink Switch – as having elements based on its patented technology. Moreover, the startup also accuses Microsoft of being complicit in the infringement, claiming that the tech giant, as a customer of Nvidia, has benefited from access to Nvidia’s infringing GPU-enabled server systems. Xockets alleges that Nvidia has been practicing a strategy of “efficient infringement,” knowingly violating patents and leaving legal matters for later resolution.
In addition to patent infringement, Xockets accuses Nvidia and Microsoft of colluding in a buying cartel facilitated by an organization known as RPX. The startup contends that RPX, established at the behest of major tech companies, including Nvidia and Microsoft, enabled them to collectively suppress innovations like Xockets’ to drive down prices. Through this alleged collusion, Xockets claims that Microsoft and Nvidia have gained control over GPU-enabled artificial intelligence, monopolizing the market and hindering competition.
Seeking justice for the alleged violations, Xockets is pursuing damages and injunctions to prohibit further infringement of its patents and violations of antitrust laws. Despite confronting two corporate giants in court, Xockets investor and board member Robert Cote expresses confidence in the startup’s ability to challenge them. Xockets’ founder, Parin Dalal, who also holds a position at Google, has actively communicated with Nvidia regarding the alleged infringement, demonstrating the startup’s resolve to defend its intellectual property rights.
The clash between Xockets and Nvidia/Microsoft unveils a complex web of allegations surrounding patent infringement, antitrust violations, and market manipulation. As the legal battle unfolds, the tech industry will closely monitor the outcome, as it may set a precedent for how disputes over innovation and competition are adjudicated in the rapidly evolving realm of artificial intelligence.
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