Startup accuses Nvidia and Microsoft of infringing on patents and forming a cartel

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Startup accuses Nvidia and Microsoft of infringing on patents and forming a cartel

Vector collage of the Ndivia logo.
Illustration: Cath Virginia / The Verge

A startup funded by the cofounder of Yahoo and CTO of Intel is suing Nvidia and Microsoft for allegedly infringing on its patent for a key innovation in AI chips and being part of a buying cartel that allegedly sought to artificially fix lower prices for the technology.

In a new lawsuit, Texas-based Xockets says Nvidia has infringed on its patented data processing unit (DPU) technology, which helps make cloud infrastructure more efficient by accelerating data-intensive workloads. Xockets says the chip giant inherited the infringement through its 2020 acquisition of Mellanox. It claims Mellanox initially infringed on its patent after Xockets publicly demonstrated its DPU tech at a conference in 2015.

Xockets alleges that three of...

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Summary

A startup called Xockets, backed by a cofounder of Yahoo and the CTO of Intel, is suing Nvidia and Microsoft for patent infringement and forming a cartel to fix prices. The lawsuit claims that Nvidia violated Xockets' patent related to data processing unit (DPU) technology, which enhances cloud infrastructure efficiency. The infringement allegedly stems from Nvidia's acquisition of Mellanox, which Xockets asserts initially infringed on the patent after Xockets showcased the technology at a 2015 conference.

This article was summarized using ChatGPT

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