A significant backlash has occurred for NVIDIA, AMD’s competitor in AI chip manufacturing, amid legal challenges related to claims of copyright infringement related to the development of their AI NeMo platform.

Reports from the global AI industry reveal that three authors have sued NVIDIA in a federal court in San Francisco for unlawfully exploiting their works, along with the works of many others, to create the NeMo generative AI model.

In the wake of this class action lawsuit announcement, NVIDIA stock fell significantly, a move that was widely noticed by the industry. This incident, which focuses on NVIDIA as a key player for insights into the future of AI crypto tokens, also underlines the risk of negative consequences for the AI ​​token market.

A detailed look at the class action lawsuit filed

According to reports, Brian Keene, Abdi Nazemian, and Stewart O’Nan claimed that their works were just some of the approximately 196,640 books used to train and develop NVIDIA’s generative AI, NeMo. These books served as a source of insight into everyday written language and played a crucial role in the development of this AI.

Strikingly, in the proposed class action lawsuit, filed in federal court in San Francisco, the authors alleged that NVIDIA removed the AI ​​platform and “admitted” that it had used these books to train NeMo, resulting in the alleged copyright infringement.

These authors are now seeking unspecified damages for individuals in the United States whose copyrighted works helped train NeMo’s large language models over the past three years. Some notable works mentioned in the lawsuit include Keene’s 2008 novel Ghost Walk, Nazemian’s 2019 novel Like a Love Story, and O’Nan’s 2007 novella Last Night at the Lobster.

Meanwhile, NVIDIA has declined to comment on the matter, sparking a wave of speculation as the company’s price on the NASDAQ fell more than 5% today after the lawsuit surfaced.

NVIDIA is benefiting from the growing adoption of AI

The rise and adoption of AI worldwide has quickly made NVIDIA, a leading manufacturer of AI chips, popular with investors and traders around the world. The company serves as a pioneer in promoting AI development. The recent decline in NVIDIA’s price may provide opportunities for a negative impact on the world of AI crypto tokens, with NVIDIA’s leading position in producing AI chips playing a key role. Despite the legal pressure NVIDIA is facing, most AI-based tokens traded in the green today.

Source: https://cryptobenelux.com/2024/03/12/nvidias-tegenslag-juridische-uitdagingen-en-marktimpact/

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