Nvidia Sued Over Alleged Fraudulent Scheme in AI Training

Nvidia is facing a shareholder lawsuit alleging that the company's board and leaders engaged in a 'fraudulent scheme' to train their generative AI models using millions of YouTube videos.

The lawsuit, filed in Illinois, claims that Nvidia systematically circumvented YouTube's access controls to harvest videos for training its AI models.

This allegedly left the company subject to 'potential massive liability,' according to the complaint.