Nvidia Faces Copyright Infringement Lawsuit Over AI Training Data – The Tech Report

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The rapid rise of generative AI, which creates new content based on inputs like text, images, and sounds, has raised concerns about copyright infringement and the potential misuse of copyrighted material. 

In a recent development, the renowned chip manufacturer powering artificial intelligence, Nvidia, has been sued by three authors, alleging unauthorized use of their copyrighted works for its NeMo AI platform. The lawsuit was filed on Friday, March 8, in a federal court in San Francisco.

It accuses Nvidia of infringing on the authors’ copyrights by utilizing their books without permission to train the language models of its NeMo AI system.

The Plaintiffs and Their Claims

The plaintiffs in the case are authors Brian Keene, Abdi Nazemian, and Stewart O’Nan. Notably, they assert that their works, including Keene’s novel “Ghost Walk,” Nazemian’s “Like a Love Story,” and O’Nan’s novella “Last Night at the Lobster,” were part of a dataset.

This comprises about 196,640 books used to train Nvidia’s NeMo AI platform. According to the lawsuit, Nvidia admitted to training NeMo on the dataset, which was subsequently taken down in October due to reported copyright infringement

The authors are seeking unspecified damages for people in the United States whose copyrighted works were used to train NeMo’s large language models over the past three years, proposing a class-action lawsuit. The lawsuit against Nvidia is not an isolated incident; it is part of a growing body of litigation surrounding the use of copyrighted works in developing generative AI technologies. 

Other prominent companies, such as OpenAI (creators of ChatGPT) and Microsoft, have also faced similar lawsuits from writers and publishers, including The New York Times. As these advanced AI systems evolve and gain wider adoption, legal disputes over intellectual property rights will likely intensify.

Nvidia’s Response and Market Impact

This lawsuit highlights the potential legal risks of training AI systems on copyrighted material without proper authorization. As such, there is a need for more precise legal frameworks and guidelines to govern such uses. 

Notably, Nvidia has previously touted NeMo as a fast and affordable way to adopt generative AI technologies.

However, the company declined to comment on the specific allegations in this case. One thing is sure: Nvidia chips have become a favorite among investors due to their pivotal role in powering AI applications.

So, despite the legal challenges, Nvidia’s stock has experienced a remarkable surge, with its price rising almost 600% since the end of 2022, giving the company a market value of nearly $2.2 trillion

As AI technologies advance rapidly, there is a growing urgency to balance fostering innovation and respecting intellectual property rights. The outcome of this lawsuit and similar cases could have far-reaching implications for the AI industry. 

This could shape future practices and potentially influence the development of new regulations or industry standards. 

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