Chip maker faces legal challenge over use of copyrighted works in AI training
- Nvidia stock dips following copyright lawsuit
- Chip maker accused of using copyrighted works in AI training
- Shares fell 1.5% to $862.74
- Lost $128 billion in market capitalization
- Authors seek unspecified damages in class action lawsuit
- Nvidia confident in compliance with copyright law
- Upcoming GTC developers’ event could impact stock momentum
- Analyst has Buy rating and $1,000 target price on Nvidia stock
- Other chip stocks mixed on Monday
- Nvidia shares up 77% this year
Nvidia shares experienced a dip in value after the company was hit with a copyright lawsuit. The chip maker is accused of using copyrighted works in training its artificial-intelligence systems. The stock fell 1.5% to $862.74, contributing to a loss of $128 billion in market capitalization. The lawsuit, filed by three authors, alleges that their copyrighted works were included without permission in a data set used to train Nvidia’s NeMo AI platform. Nvidia maintains that it created NeMo in compliance with copyright law. While the lawsuit may not pose a major threat to Nvidia, it highlights the ethical and legal challenges surrounding the adoption of AI. The company’s upcoming GTC developers’ event could impact the stock’s momentum, with analysts looking for positive announcements to drive use cases for Generative AI. Despite the dip, one analyst maintains a Buy rating and a $1,000 target price on Nvidia stock. Other chip stocks had mixed performance on Monday. Nvidia shares have seen a significant increase of 77% this year.
Factuality Level: 7
Factuality Justification: The article provides a factual account of Nvidia being sued over allegedly using copyrighted works in training artificial-intelligence systems. It includes quotes from Nvidia’s spokesperson and an analyst, as well as information about the stock market performance and upcoming events. The article does not contain significant digressions, misleading information, sensationalism, redundancy, or biased opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Nvidia being sued over allegedly using copyrighted works in training AI systems. It discusses the impact on Nvidia’s stock price, the legal complaint filed by authors, and the potential implications for the company. The article stays on topic and supports its claims with quotes from Nvidia’s spokesperson and an analyst. However, it lacks in-depth analysis of the long-term implications of the lawsuit and does not explore broader consequences beyond stock price fluctuations.
Financial Relevance: Yes
Financial Markets Impacted: Nvidia shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to a lawsuit against Nvidia, a major chip maker, which could have financial implications for the company. However, there is no mention of an extreme event.
Public Companies: Nvidia (NVDA), Advanced Micro Devices (AMD), Intel (INTC)
Key People: Ben Reitzes (Melius Research analyst)
Reported publicly:
www.marketwatch.com 
