EXCLUSIVE: Tech Giants Nvidia and Microsoft Caught in Web of Deceit and Price Fixing
In a shocking revelation, Texas-based startup Xockets has accused Nvidia and Microsoft of engaging in a massive conspiracy to rip off the tech industry and consumers alike. The company, backed by the co-founder of Yahoo and CTO of Intel, is suing the two giants for allegedly infringing on its patent for a key innovation in AI chips and participating in a buying cartel to artificially fix prices.
Nvidia’s Dirty Little Secret
Xockets claims that Nvidia’s acquisition of Mellanox in 2020 inherited the infringement of its patented data processing unit (DPU) technology, which accelerates data-intensive workloads in cloud infrastructure. The startup alleges that Nvidia’s BlueField, ConnectX, and NVLink Switch DPUs are based on Xockets’ patented tech, and that the company has been aware of the infringement since 2022.
Microsoft’s Complicity
But that’s not all. Xockets also accuses Microsoft of infringing on its patents, claiming that as an Nvidia customer, the software giant has "privileged access" to Nvidia’s infringing GPU-enabled server computer systems and components for AI. This is not just a case of accidental infringement; Xockets believes that Microsoft is actively colluding with Nvidia to undermine its patented technology.
The Buying Cartel
Xockets alleges that Nvidia and Microsoft are part of a buying cartel, facilitated by RPX, a company formed by Big Tech to enable and create buyers’ cartels for intellectual property. This cartel allegedly allows the two companies to jointly boycott innovations like Xockets’ in order to drive prices lower than if each company had negotiated on its own. The result? A monopolized market for GPU servers for AI, with Nvidia and Microsoft controlling the equipment and platforms necessary to access this capability.
Xockets Takes on the Goliaths
Despite facing two of the largest companies in the country, Xockets is refusing to back down. With the support of its investor and board member Robert Cote, an IP lawyer, the startup is seeking damages for the alleged infringement and antitrust violations. Cote has vowed that Xockets has "more than enough wherewithal to take on Goliath."
The Verdict
This is not just a case of a small startup taking on the tech giants; it’s a battle for the soul of innovation. Will Xockets be able to bring these behemoths to justice, or will they continue to use their size and influence to stifle competition and innovation? Only time will tell.
