Authors Sue Nvidia, Saying AI Model Used Copyrighted Content in Training – Investopedia

Abdi Nazemian, Stewart O’Nan, and Brian Keene filed a copyright infringement lawsuit against Nvidia Corp. (NVDA) on Friday, saying that the company’s conversational artificial intelligence (AI) toolkit, NeMo, used their 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 1.7% at $860.17 as of 3:15 p.m. ET Monday. But the stock has gained about 74% since the start of 2024, despite a dramatic intraday reversal of more than 10% to end Friday’s session 5.6% lower as investors scrambled to lock in profits following prominent analysts’ concerns about the stock’s lofty trading levels.