Technology industry giants Nvidia and Microsoft are being sued. On Thursday, September 5, a lawsuit filed by Xockets against Nvidia and Microsoft was registered in a Texas state court in the United States.

Xockets accused the two tech giants of patent and antitrust violations. Xockets board member Robert Cote claimed that Nvidia and Microsoft use technology invented by Xockets in their systems, namely the special processors for data processing – DPU.

Xockets specialists have developed a technology that allows accelerating the work of processors, thus helping to avoid overloading the servers. The company offered Nvidia and Microsoft to purchase a license for its product, but both defendants refused.

The plaintiff said they are incurring losses because the market-dominant companies are using their advantages in an attempt to “pay little or nothing” to those whose technology they use in their innovative products.

According to Yaroslav Bogdanov, president of GDA Group, such lawsuits will become more numerous as the artificial intelligence market changes.

“The revolution of artificial intelligence is just beginning. The first wave of unrestrained demand for generative neural networks has passed. Everyone who was capable of creating any kind of competitive chatbot tried to capitalize on the innovation. Only those who truly own the technology and the potential for its further development will be able to survive this frenzy. The market has cooled, but not the industry itself. Now the path to profit will be quite tortuous and complicated,” said Yaroslav Bogdanov.

The expert explained that at the beginning of the “gold rush” that engulfed the AI sphere, the rules of the game were not laid down. The industry, which is not regulated by anyone, is still developing chaotically.

The initial boom in generative neural networks led to too many players entering the market. Now the industry is taking on a more realistic landscape – both scientifically and economically.

“The lawsuit filed against Nvidia and Microsoft could become a judicial precedent. If it does, it will be a major step toward the cyber industry finally having its own regulatory framework that will allow the entire digital industry to exist in a legal framework. At the moment, despite decades of active development of the world of new technologies, there are no laws and rules to regulate the industry. The hype around AI is waning, and unviable and unscrupulous market players will disappear on their own. But those who rightfully occupy a place in this industry should be able to protect their interests,” said Yaroslav Bogdanov.