Nvidia and Valeo Settle Trade-Secrets Dispute Ahead of Trial

Nvidia and Valeo have resolved their high-stakes trade-secrets lawsuit, avoiding a trial scheduled for next month. The agreement, disclosed in a San Jose federal court filing, ends a bitter dispute stemming from a joint project with Mercedes-Benz to develop advanced driving technology.

The conflict erupted in 2021 when a Valeo engineer defected to Nvidia. During a video call, Valeo employees allegedly spotted proprietary code on the engineer's screen—evidence they captured via screenshot before he closed the window. This incident formed the basis of Valeo's 2023 lawsuit accusing Nvidia of benefiting from misappropriated intellectual property.

Nvidia maintained it never used the contested code, claiming it purged all work touched by engineer Mohammad Moniruzzaman, who was later convicted in Germany for trade-secret violations. A judge ruled in August that sufficient circumstantial evidence existed for a jury trial, though terms of the settlement remain confidential.