Meta sued for stealing AI trade secrets By

© Reuters

Michael Elkins

Meta Platforms Inc (NASDAQ:), the parent company of Instagram, Facebook and WhatsApp, failed on Monday to complete a lawsuit in federal court in Boston alleging the company stole confidential information from AI startup Neural Magic Inc.

According to experts, Meta owes the startup about $766 million in royalties.

District Judge Denise Kasper said the social network will stand trial for stealing “revolutionary” Neural Magic algorithms that allow artificial intelligence systems to process information faster.

Neural Magic sued Meta (formerly known as Facebook) in 2020 for allegedly stealing algorithms that allow simpler computers to perform complex mathematical calculations more efficiently and researchers to exploit large datasets.

The complaint alleges that Meta hired Neural Magic computer scientist Alexander Zlateska, who allegedly outsourced the algorithms to the social media giant.

Last year, Meta asked the court to dismiss the case, arguing that Neural Magic failed to identify any protected trade secrets and that Zlateski did not improperly obtain the information. On Monday, the court allowed Neural Magic to sue 40 of the 41 secrets it accused Meta of stealing.

However, Judge Casper dismissed Neural Magic’s claims that Meta violated the non-compete clause or engaged in unfair business practices under Massachusetts law.

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