This legal action is part of a trend, with similar lawsuits filed against other big tech companies like OpenAI, Microsoft Corp
Tech giant NVIDIA Corporation is facing a lawsuit over allegations of using copyrighted content to train its artificial intelligence (AI). Authors Brian Keene, Abdi Nazemian, and Stewart O’Nan claim that NVIDIA utilised a dataset of approximately 196,640 copyrighted books without permission for its NeMo AI platform. The authors confirmed that their books were included in this dataset, which was used to teach NeMo to mimic natural language.
The lawsuit was filed in California as a proposed class action on Friday night. It alleges that NVIDIA admitted to training NeMo using the dataset, which was subsequently taken down in October due to copyright infringement reports. The authors are seeking unspecified damages in response to the alleged unauthorised use of their works.
NVIDIA has not yet responded to media requests for comment regarding the lawsuit.
This legal action is part of a trend, with similar lawsuits filed against other big tech companies like OpenAI, Microsoft Corp (NASDAQ: MSFT), and Meta Platforms Inc (NASDAQ: META). Various authors have claimed that their works were also used without permission in training AI by these companies.
In response to news of the lawsuit, NVIDIA’s shares traded slightly lower on Monday, reaching around $872 after experiencing a 5.5 per cent drop on Friday. Despite this recent decline, the stock has seen a 70% increase in the year-to-date.
Kathleen Brooks, the research director at XTB, noted that prior to the sell-off, there were discussions about NVIDIA’s stock price potentially reaching $1,000. She highlighted that while NVIDIA’s earnings are expected to remain strong, the market for AI stocks has experienced significant growth over the past 15 months. The recent pullback in NVIDIA’s stock serves as a reminder of the frothiness in the AI stock market, despite the company’s solid fundamentals and position as a leading producer of GPUs for data centres.
