Nvidia Tech Violates AI Computing Patents, Texas Lawsuit Says

Sept. 16, 2024, 7:49 PM UTC

Nvidia Corp. was hit with a lawsuit alleging a suite of software, including AI tools, infringed several machine learning technology patents.

The AI computing giant knowingly violated patents for technology that aids the execution of complex algorithms, Neural AI LLC said in a complaint filed Friday in the US District Court for the Western District of Texas. The Texas company asked the court for a jury trial, as well as damages to compensate for past and future infringement.

A Nvidia spokesperson declined to comment.

Neural AI asserted three patents: US Patent Nos. 8,648,867; RE49,461; and RE48,438. The patents “revolutionized” the field of graphical processor unit-accelerated computing, which powers many advanced forms of AI, the complaint said. The patents leveraged the unique advantages of graphical and central processing units to “enable their efficient interplay in hardware-accelerated computing,” it said.

Nvidia’s then-chief technology officer Sanford Russell discussed the technology with the patents’ inventors in 2007, Neural AI said in it complaint. The inventors inquired about collaboration, but Neural AI said Nvidia wasn’t interested.

Years later, the inventors talked with Nvidia about the possibility of the company investing in or purchasing their AI company, Neurala Inc., the filing said. Nvidia initiated discussions in 2016 about investing $10 million in the company, it said.

Despite knowing about the patents, Nvidia “made the deliberate decision” to sell products and services it knew were infringing, Neural AI said. The complaint lists a suite of Nvidia products, such as its accelerator and superchip technology.

Cherry Johnson Siegmund James PLLC and King & Spalding LLP represent Neural AI. Counsel for Nvidia has yet to enter an appearance.

The case is Neural AI, LLC v. NVIDIA Corporation, W.D. Tex., No. 7:24-cv-00221, complaint filed 9/13/24.


To contact the reporter on this story: Jorja Siemons in Washington at jsiemons@bloombergindustry.com

To contact the editor responsible for this story: Kartikay Mehrotra at kmehrotra@bloombergindustry.com

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