Xockets Sues Nvidia and Microsoft for Patent Infringement and Antitrust Violations
Xockets, a Texas-based technology company, has filed a lawsuit against Nvidia and Microsoft, alleging that the companies infringed on its patents and violated antitrust laws. The lawsuit centers around Nvidia’s data processing units (DPUs), which are crucial for its AI computing capabilities. Xockets claims that Nvidia stole this technology and that Microsoft is illegally benefiting from it.
Nvidia’s Acquisition of Mellanox Under Scrutiny
The lawsuit specifically points to Nvidia’s 2020 acquisition of Mellanox, a company that makes networking equipment. Xockets alleges that Mellanox unlawfully adopted its DPU technology in 2016. This acquisition was a key part of Nvidia’s move into the AI market, and Xockets’ lawsuit could have major implications for the company.
Nvidia currently controls about 90% of the market for AI accelerator chips. If Xockets’ lawsuit is successful, it could block the sale of Nvidia’s new Blackwell AI chips. This would be a significant blow to Nvidia’s business and could give its competitors a chance to catch up.
Xockets Seeks Billions in Damages and Injunction Against Nvidia’s AI Chips
Xockets is seeking billions of dollars in damages from Nvidia and Microsoft. The company claims that Nvidia’s customers have saved a significant amount of money by using its stolen technology. Xockets is also asking the court to issue an injunction that would block the sale of Nvidia’s Blackwell AI chips. This would prevent Microsoft from using these chips in its products, potentially delaying the rollout of new AI technologies.
Lawsuit Highlights Growing Concerns Over Tech Giants and Intellectual Property
The lawsuit also accuses Nvidia and Microsoft of working together to avoid paying for Xockets’ technology. Xockets claims that the companies conspired with RPX, a patent risk management firm, to create an illegal cartel. This cartel allegedly helped Nvidia and Microsoft dominate the AI market while shutting out smaller competitors like Xockets.
This case is just one example of a growing trend of lawsuits between smaller companies and tech giants over intellectual property. As AI becomes increasingly important, we can expect to see more of these battles play out in court.
