Patent Lodge

As excitement concerning AI technology rages on, we have seen more reporting with respect to certain companies. For example, over the past few months, Nvidia Corp. has appeared in the headlines repeatedly. Headquartered in Santa Clara, California, and founded in 1993, Nvidia Corp. has made no secret about its desire to be the world’s largest AI microchip maker. However, the company has been facing challenges.

• In September 2024, a lawsuit was filed in the U.S. District Court for the Western District of Texas against Nvidia as well as Microsoft by Xockets Inc., a Texas company, for patent infringement. At the heart of this matter is Data Processing Unit (DPU) technology, with DPUs enabling accelerated computing and AI in cloud data centers. Of course, patent infringement lawsuits occur every day; however, this one may be interesting to observe, based on the continuing boost in patent filing of AI technology, the industry leaders involved in the conflict and the ever-evolving guidelines used in assessing patentability of AI. Also noteworthy is the anti-trust allegation that is further being alleged by Xockets Inc. We will keep you updated as this case moves forward…
• Just this month, a chief scientist with Nvidia, William Dally, raised caution concerning the U.S.’s slow power grid expansion and how this could ultimately lead to AI companies heading overseas for their new facilities. The cause for concern relates to power shortages that can occur over peak times, which would severely affect cooling of AI facilities, and in turn, cause economic slowdown depending on the AI data. Will this push the bulk of AI chip manufacturing outside the U.S.?
• Also this month, Nvidia introduced its most advanced chip, Blackwell, while addressing rumors of overheating issues. When chips overheat, they stop working until cooled to a workable temperature. To address the issue for advanced chips, liquid cooling has been used in the data centers. Liquid cooling has been a game-changer, and most effective in combating overheating and chip downtime. While being promoted as an easy solution, most facilities would likely not be so equipped, which points back to the previous issue; if facilities need to be revamped, would companies be prone to consider relocating their facilities outside the U.S.?