Xockets has filed a lawsuit against Nvidia, Microsoft, and RPX in the U.S. District Court for the Western District of Texas, alleging rampant patent infringement and violations of antitrust laws.

The lawsuit seeks damages and a court order to prevent Nvidia and Microsoft from continuing their alleged patent violations.

Xockets asserts that Nvidia knowingly used its patented technology in its data processing unit (DPU) products, which are crucial for AI applications.

Robert Cote, a board member at Xockets, highlighted that their advanced DPU technology is essential for the success of both Nvidia and Microsoft in the AI sector.

This case underscores a broader conflict between patent holders and large technology firms, illustrating the shifting power dynamics in the tech industry.

As of now, Nvidia and Microsoft have declined to comment on the allegations, and RPX has not responded to requests for comment.

The lawsuit also accuses Microsoft of infringing on Xockets' patents by having privileged access to Nvidia's infringing GPU-enabled server systems.

Cote emphasized that the companies are abusing their market power to minimize payments for the innovations they utilize.

The case, titled Xockets Inc v Nvidia, Microsoft, and RPX, claims that the companies have engaged in a 'buyers' cartel' to avoid compensating Xockets for its intellectual property.

Xockets began discussions with Microsoft in 2016 regarding its patent portfolio but alleges that Mellanox Technologies adopted its technology without permission that same year.

The startup claims that Mellanox adopted its technology in 2016, which has allowed Nvidia to dominate the GPU-enabled AI server market.

If the jury finds in favor of Xockets, damages could reach billions, reflecting the significant value of the technology involved.