Nvidia is the most recent IoT-focused enterprise to face a trademark complaint.
The company, known for producing chips that drive artificial intelligence (AI) applications, is being taken to court by a group of authors who allege that Nvidia utilized their copyrighted books without authorization to train its NeMo AI platform, as per a report by Reuters on Sunday (March 10).
According to the report, authors Brian Keene, Abdi Nazemian, and Stewart O’Nan claimed that their literary works were part of a dataset comprising approximately 196,640 pieces that were instrumental in instructing NeMo to generate coherent written content. However, these works were subsequently removed in October following allegations of copyright infringement.
The lawsuit asserts that Nvidia’s removal of the novels implies an acknowledgment that they were used to train NeMo, thereby violating the authors’ copyrights. The authors are seeking unspecified damages on behalf of individuals in the United States whose copyrighted materials contributed to the training of NeMo’s extensive language models (LLMs) over the past three years, according to Reuters.
When approached by PYMNTS for a statement, a spokesperson for Nvidia chose not to comment.
This potential class-action lawsuit is part of a broader trend of legal disputes targeting AI firms. In a similar vein, in December, a coalition of 11 artists initiated legal action against OpenAI, the creator of ChatGPT, and its partner Microsoft, alleging trademark infringements.
During the same period, The New York Times filed a lawsuit alleging copyright violations against OpenAI and Microsoft, claiming that these tech companies utilized its content without permission in the development of their AI technologies.
In response to inquiries from PYMNTS, a spokesperson from OpenAI emphasized the company’s commitment to respecting the rights of content creators and owners, stating that they are dedicated to collaborating with them to ensure they reap the benefits of AI technology and novel revenue streams.
Meanwhile, Nvidia is poised to surpass Apple as the world’s second most valuable company as the AI sector continues to expand, bolstering its position as the premier player in the AI chip market, where it currently holds an 80% market share.
As highlighted in a recent article by PYMNTS, this market dominance has propelled Nvidia’s valuation from \(1 trillion to over \)2 trillion in just nine months, enabling it to surpass the likes of Amazon, Alphabet (Google’s parent company), and Saudi Aramco.
As of Friday, Nvidia’s market capitalization was nearing the \(2.38 trillion milestone, positioning it \)230 billion behind Apple and $645 billion behind the frontrunner, Microsoft.
