Nvidia hit with trademark lawsuit over 'Modulus' AI software

April 8 (Reuters) - Nvidia (NVDA.O) has been sued for trademark infringement in Texas federal court by financial-technology company Modulus Financial Engineering over the chipmaker's Modulus artificial-intelligence software.

Modulus Financial on Friday asked the U.S. District Court for the Western District of Texas to force Nvidia to stop using the Modulus name, which it said would create consumer confusion with its own AI-related software.

An Nvidia spokesperson declined to comment on the lawsuit on Monday. Modulus Financial CEO Richard Gardner said in a statement that the lawsuit was "a necessary step to protect our brand, which is the result of decades of hard work and investment."

Scottsdale, Arizona-based Modulus Financial has provided financial software to companies including JPMorgan Chase, Bank of America, and Goldman Sachs since 1997, according to its website. Its lawsuit said that the company has "become widely recognized for its leadership and innovation — including within the field of A.I.," and incorporates AI technology into its software.

Nvidia has become one of the largest companies in the world based on the widespread use of its chips to power AI technology. Its Modulus software is an open-source framework for developing machine-learning models for AI systems.

Nvidia changed the software's name from SimNet to Modulus in 2021. Modulus Financial said that the new name infringes its earlier "Modulus" and "Modulus AI" trademarks.

Modulus Financial asked the court for an unspecified amount of monetary damages in addition to an order requiring Nvidia to drop the "Modulus" name.

The case is Modulus Financial Engineering Inc v. Nvidia Corp, U.S. District Court for the Western District of Texas, No. 1:24-cv-00362.