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Key Takeaways
- Nvidia Corp. shares fell during intraday trading Monday after authors sued the company for copyright infringement.
- Abdi Nazemian, Stewart O’Nan, and Brian Keene filed a complaint against Nvidia on Friday, saying that the company used their copyrighted content to train NeMo, a conversational artificial intelligence (AI) toolkit.
- A company spokesperson said it “respect[s] the rights of all content creators and believe we created NeMo in full compliance with copyright law,” according to a statement obtained by Investopedia.
- OpenAI and Microsoft face a similar copyright infringement lawsuit filed by The New York Times.
Nvidia Corp. (NVDA) shares fell on Monday after authors filed a copyright infringement lawsuit against the company.
Abdi Nazemian, Stewart O’Nan, and Brian Keene filed a complaint against Nvidia on Friday, saying that the company’s conversational artificial intelligence (AI) toolkit, NeMo, used copyrighted content.
The filing said that the plaintiffs are authors who “own registered copyrights in certain books that were included in the training dataset that NVIDIA has admitted copying to train its NeMo Megatron models.”
It says that Nvidida “copied these copyrighted works multiple times to train its NeMo Megatron language models.” Researchers use NeMo “to reuse prior work (code and pretrained models) and make it easier to create new conversational AI models.”
“We respect the rights of all content creators and believe we created NeMo in full compliance with copyright law,” an Nvidia spokesperson told Investopedia Monday.
OpenAI faces a similar copyright infringement lawsuit. The New York Times (NYT) in December sued OpenAI and Microsoft Corp. (MSFT), alleging that their ChatGPT product was trained using the newspaper’s articles without its permission.
Nvidia shares were down 0.91% at $867.29 as of 2:49 p.m. ET Monday. But the stock has gained about 75% since the start of 2024.