Xockets, a Texas-based developer of advanced Data Processing Units (DPUs), has filed a lawsuit in the U.S. District Court for the Western District of Texas against Nvidia, Microsoft, and RPX Corp. The lawsuit alleges that Nvidia and Microsoft formed an illegal cartel, facilitated by RPX, to avoid paying fair market value for Xockets’ patented DPU technology. This technology, according to Xockets, has been essential for Nvidia’s AI-driven GPU systems and Microsoft’s AI platforms. The complaint also claims that Nvidia has been infringing on Xockets’ patents since its 2020 acquisition of Mellanox, which has allowed Nvidia to dominate the market for AI-enabled servers. Xockets seeks both an injunction to halt Nvidia’s upcoming Blackwell GPU systems and financial damages.
• Xockets claims Nvidia and Microsoft formed an illegal cartel to avoid paying for its patented technology.
• The lawsuit alleges Nvidia’s infringement began after its acquisition of Mellanox in 2020.
• Xockets seeks an injunction to stop the release of Nvidia’s Blackwell GPU systems.
• Xockets is also pursuing financial damages and enforcement of its intellectual property rights.
“Nvidia and Microsoft are abusing their dominance and market power in AI in an attempt to pay little or nothing for the innovations of others,” said Robert Cote, Xockets board member.
