A hardware company has raced past all the well established software giants to become the most valuable company on earth. It was first to break the $4 trillion market capitalisation barrier and continues to be the only company in that league. The company we are talking about is none other than Nvidia. The company’s criticality in the AI age emanates from the fact that Nvidia GPUs are designed for parallel processing, making them ideal for handling the intense mathematical calculations involved in training and running the large models.
As of 2025, Nvidia controls over 80% of the global market for GPUs used in AI training and deployment, and its hardware is present in more than 75% of the world’s TOP500 supercomputers. Nvidia has been cleared for sale to China as well recently. While the Nvidia party is on, there is news of a recent patent litigation against them. German supercomputing company ParTec AG has filed a third patent lawsuit against Nvidia in Munich, accusing Nvidia of using its patented technology without permission in the DGX AI supercomputers. ParTec’s technology, called dynamic Modular System Architecture (dMSA), allows CPUs and GPUs to efficiently work together by sharing tasks even during complex AI calculations.
This technology is essential for AI systems powering industries like healthcare, finance, and automotive, where supercomputers must handle massive data quickly and effectively. ParTec’s patent lawsuit against Nvidia centers on their patented dynamic Modular System Architecture (dMSA), a technology that enables CPUs, GPUs, and other processors to dynamically coordinate and share workloads even during active computations. This is crucial for supercomputers handling massive AI tasks that require real-time, efficient collaboration between different types of processors.
The use of patented dMSA technology in its DGX AI supercomputers without authorization by Nvidia necessarily leads to serious patent infringement claims with significant implications for the future of AI hardware licensing and development.ParTec is demanding that Nvidia should stop selling its key DGX AI supercomputers in 18 European countries where ParTec holds patents. This lawsuit highlights growing tensions as Europe relies heavily on U.S. tech giants like Nvidia and Microsoft for AI infrastructure, while European companies fight to protect their innovations. If ParTec wins, Nvidia might have to redesign its AI systems for Europe or pay licensing fees, potentially shaking up the AI hardware market.
EUROPE’s AI FUTURE IS AT STAKE AS PAR TEC CHALLENGES U.S. TECH GIANT NVIDIA’s CHIP DOMINANCE.
Sanjay Sahay
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