05:30 PM EDT, 09/05/2024 (MT Newswires) -- Nvidia ( NVDA ) is being accused of stealing patented technology from a small Texas firm to produce data processing units, a new line of programmable computer chips Microsoft ( MSFT ) expects to use for artificial intelligence applications.

The lawsuit filed Thursday in a US District Court in Waco, Texas, by privately held Xockets accuses Nvidia ( NVDA ) of infringing on seven of its patents and seeks unspecified damages in addition to blocking future DPU sales that rely on Xockets technology.

The complaint also alleges Nvidia ( NVDA ) and Microsoft ( MSFT ) created a "buyer's cartel" with a third-party intellectual property brokerage to avoid negotiating directly with Xockets and continue using its technology at a steep discount to its actual market value.

Microsoft ( MSFT ) declined to comment to MT Newswires. Nvidia ( NVDA ) and the third defendant, private equity-backed RPX, did not immediately respond.

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