March 27, 2024
Nvidia Faces Lawsuit Over NeMo AI Copyright Allegations

Nvidia Faces Lawsuit Over NeMo AI Copyright Allegations

Nvidia, a prominent player in the realm of generative artificial intelligence, now confronts legal ramifications as authors Brian Keene, Abdi Nazemian, and Stewart O’Nan initiate a proposed class action lawsuit. Filed in a federal district court in California on Friday, the suit asserts that Nvidia’s NeMo AI platform utilized their works within a dataset comprising nearly 197,000 books.

This pivotal dataset, integral to the training of NeMo, included books sourced from Bibliotik, characterized as a “shadow library” hosting unlicensed copyrighted material. The dataset’s operation persisted until October 2023, after which it was marked as defunct due to reported copyright infringement issues.

Nvidia NeMo, Image by Nvidia

Keene, Nazemian, and O’Nan contend that Nvidia’s decision to remove the dataset essentially acknowledges its utilization in training NeMo models, constituting a violation of copyright. The lawsuit seeks unspecified damages for individuals in the U.S. whose copyrighted works contributed to the training of Nemo’s large language models within the past three years.

In response to these legal proceedings, Nvidia issued a statement asserting, “We respect the rights of all content creators and believe we created NeMo in full compliance with copyright law.”

The legal developments have not been without financial implications for Nvidia, as its stock experienced a decline of almost 2% in Monday morning trading, following a 5.6% dip on Friday. Despite these recent setbacks, Nvidia’s shares have exhibited a remarkable surge, recording an impressive 273% increase over the past 12 months, maintaining a valuation well above that of industry giants like Amazon and Google parent Alphabet.

Nvidia now finds itself in the company of other AI-focused entities grappling with legal challenges about the alleged unauthorized use of licensed material. Notably, OpenAI, the startup backed by Sam Altman and Microsoft, is responsible for the development of ChatGPT.

It is embroiled in lawsuits filed by various authors and news outlets, including The New York Times. Concurrently, Anthropic, a developer of chatbot technology, faces legal action from Universal Music Group, while visual artists have initiated legal proceedings against Midjourney and Stability AI.

In the complex legal landscape of artificial intelligence, Nvidia and its counterparts navigate a challenging terrain, contending with allegations of copyright infringement amidst the swiftly evolving dynamics of this innovative field.

Image by wirestock on Freepik

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