Nvidia Ordered to Face Trial Over Alleged Valeo Trade Secret Theft

Nvidia (NVDA, Financials) must go to trial in a case where it's accused of using stolen autonomous driving trade secrets from Valeo, a European automotive supplier, a California judge ruled Thursday. Evidence suggests the company may have benefited from confidential data taken by a former Valeo engineer.

The case centers on a collaboration between Nvidia and Valeo's German unit in 2021, working on a project for Mercedes-Benz. During a video conference, Valeo employees saw their own confidential source code appear on the Nvidia engineer's screen before he closed it. That engineer has since been convicted in Germany for stealing business secrets. Valeo captured a screenshot and launched both criminal and civil claims, alleging Nvidia gained an unfair advantage in developing parking assistance technology.

Judge Noel Wise found circumstantial evidence enough to send the key claims to a jury. She noted Nvidia's rapid gains in parking-technology development and striking parallels between its code and Valeo's proprietary files. Nvidia denied wrongdoing, stating it rejected the engineer's contributions and relied solely on its internal development for autonomous driving features.