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Xockets Files Antitrust, Patent Infringement Lawsuit Against NVIDIA and Microsoft

Xockets, inventor of Data Processing Unit (DPU) technology has launched a legal battle against NVIDIA and Microsoft. The lawsuit, filed in Texas, accuses the companies of forming an illegal cartel to avoid fair compensation for its patented DPU technology. Xockets claims that the Data Processing Unit technology its co-founder Parin Dalal invented in 2012 is fundamental to NVIDIA's GPU-enabled AI systems and Microsoft's AI platforms. The lawsuit alleges that NVIDIA has infringed on Xockets' patents since its 2020 acquisition of Mellanox, a deal NVIDIA's CEO Jensen Huang once called a "homerun." Xockets is seeking injunctions to halt the release of NVIDIA's new Blackwell GPU-enabled AI systems and Microsoft's use of these systems in their generative AI platforms.

The case touches on the bigger issues of intellectual property rights and the monopoly in the tech sector. Robert Cote, a Xockets board member, describes the suit as a fight against "Big Tech's predatory infringement playbook," accusing NVIDIA and Microsoft of making moves to devalue smaller companies' innovations. The AI revolution continues to transform the tech world, and this legal dispute may have a profound effect on the way intellectual property is valued and protected in the industry, possibly introducing new precedents for the relationship between tech giants and smaller innovators.

Embracer Offloads Gearbox to Take-Two - $460 Million Deal Unveiled

Embracer Group has entered (as of March 28) into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. ("Take-Two"). The proceeds from the deal will, upon closing, significantly reduce net debt, earnout obligations and capex. Embracer retains selected companies, including Gearbox Publishing San Francisco (to be renamed), with the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases.

"Yesterday's announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world's greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two," says Lars Wingefors, co-founder and CEO of Embracer.

Remedy Entertainment Acquires Full Rights to the Control Franchise from 505 Games

Yesterday, Remedy Entertainment Plc ("Remedy") and 505 Games S.p.A. ("505 Games") announce a transaction upon which all publishing, distribution, marketing and other rights to Control, codename Condor, Control 2, and all future Control products will revert to Remedy. The Control franchise is in the core of Remedy. Having acquired the full rights to Control, Condor and Control 2, Remedy is now in a position to make the right product and business decisions focusing on long-term franchise growth.

The transaction has no immediate effect on the income statement, while we see attractive growth opportunities arising in the mid-to-long term. This transaction will enable us to negotiate better deals for current and future Control games. We can now weigh up the options between self-publishing and a new publishing partner for Condor and Control 2. At the same time, we are in a better negotiating position than before as Control is an established brand and Alan Wake 2 has been successful. We are confident that these factors combined will enable us to get the right partner, deal structure and risk-reward profile that benefit Remedy and are the best fit for the Control franchise. We will evaluate and negotiate with potential future partners over the coming months.

ASUS NUC Product Lineup is Official

The North American branch of ASUS has unveiled its NUC product lineup—this announcement arrives only a month and a half after making an agreement with Intel to transfer rights for the sales and manufacturing of NUC products to their Business Unit (NUC BU). Their X account tweeted out late last week: "Exciting News! 🚀 Starting September 1st, NUC becomes a proud member of the ASUS product lineup, setting off on an exhilarating journey ahead 🎉 Delve into NUC product specifics on the official ASUS website."

ASUS seems to have absorbed the current crop of 10th to 13th NUC series systems into its portfolio, although the emphasis appears to be placed on Raptor Lake-based units. Other news outlets anticipate that ASUS NUC 13 Extreme products (minus ROG livery) could hit the market soon. The ASUS marketing blurb outlines their ambitions going forward: "NUC-Powerful experiences in small packages. NUC-rhymes with luck-is the Next Unit of Computing that delivers incredible performance, rich l/O, high-end graphics capabilities, and sleek designs for everyone and every situation, including gaming and business." ASUS NUC BU will likely adopt upcoming Raptor Lake Refresh and Meteor Lake CPUs.

U.S Consumer Watchdog Not a Fan of Google Chromebook Durability

Last week the US Public Interest Research Group (US PIRG) Education Fund issued a report titled "Chromebook Churn", and the technology press was quick in its reading and analysis of this PDF document - filled with unfavorable findings. The main focus of the consumer watchdog's investigation was on a great uptake of Chromebooks in the education sector - schools in the United States of America have been providing a high percentage of their students with the relatively cheap ChromeOS-based laptop computers - especially during the pandemic period. The PIRG's Churn report cites numerous sources regarding disappointing Chromebook lifespans - schools are experiencing a high rate of hardware failure and technical issues relating to software updates - and as a result of these problems, irreparable devices are piling up as e-waste.

PIRG has called on Google and its manufacturing partners to effectively "double the life of these widely used laptops, saving schools money and helping the environment." Chromebooks are considered to be a cost effective entry into computing, but the watchdog reckons that a nice starter price tag does not reflect well when stacked up against the product's long term prospects. Schools are experiencing a high rate of Chromebook failures, especially once devices hit a three year long usage mark, and the required repair process is said to be problematic. PIRG states that warranty terms are unfavorable beyond the manufacturer set lifespan, and schools are having to pay for third party renovations and sourcing of spare parts (which is a complicated process in itself). The watchdog posits that schools in the USA could save a total of $1.8 billion (for taxpayers) - if Google doubles the lifespan of Chromebook, not accounting for extra maintenance costs.
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