HomeMarket NewsNvidia Faces Lawsuit Over Alleged Copyright Infringement in AI Training

Nvidia Faces Lawsuit Over Alleged Copyright Infringement in AI Training

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Kaufbeuren Germany April 26 2021 Nvi 3

Intellectual Property Dispute Unfolds

NVIDIA Corp NVDA has found itself embroiled in a legal tangle, as three authors, Brian Keene, Abdi Nazemian, and Stewart O’Nan, filed a lawsuit against the tech giant for allegedly utilizing their copyrighted works without proper authorization to train its AI platform.

Legal Battle Erupts

The Allegations: According to Reuters, the authors have accused Nvidia of including their literary creations in a dataset comprised of around 196,640 books. These works were reportedly used to educate Nvidia’s NeMo AI platform in the nuances of written language. The dataset faced removal in October last year due to concerns of copyright infringement.

Stock Performance Amid Legal Storm

Despite the legal dilemma, Nvidia’s financial prowess remains strong. The company’s stock has soared by nearly 600% since the close of 2022, propelling its market valuation to a substantial $2.2 trillion.

Challenges and Market Flux

The Larger Context: Nvidia’s recent troubles come amidst broader industry challenges. On March 9, the chipmaker’s shares faced a 5.55% decline, snapping a six-day winning streak. Noted portfolio manager Jeff Kilburg sounded alarms about potential further market downturns, citing Nvidia’s staggering $225 billion slide in market capitalization from its peak.

Despite market uncertainties, Nvidia’s shares continue their meteoric rise, fueling conversations around a potential stock split to enhance accessibility for retail investors deterred by high share prices.

Notable money manager Cathie Wood has also expressed apprehensions about a looming correction in the semiconductor sector, which could impact Nvidia’s future performance.

Market Outlook and Speculation

If Nvidia can weather the storm of legal battles and market fluctuations, its resilience may cement its position as a powerhouse in the tech domain. Despite the challenges, investors are closely eyeing Nvidia’s trajectory as it navigates these turbulent waters.

Image Via Shutterstock

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