Nvidia's board sued personally — the third “silent AI” derivative suit of 2026
A shareholder derivative suit alleges Nvidia's directors knew the company's AI models were trained on pirated copyrighted material and on human voice recordings used without consent under Illinois' Biometric Information Privacy Act — and let it happen anyway. It's the third such suit in 2026: Microsoft's board in June (copyright), Adobe's in April (copyright), and now Nvidia in August, adding a biometric-privacy claim. The underlying conduct wouldn't normally be a D&O matter — naming the board directly converts it into one, a pattern plaintiffs' firms are calling “silent AI.”
“Silent AI — How a Vendor's Copyright Problem Becomes Your Board's Personal Liability.” A concrete, current case for the fiduciary-duty argument, not a hypothetical.
If it turned out tomorrow that an AI system your company relies on was trained on data it didn't have the rights to — would that be your vendor's problem, or could your board show it asked the right questions before that risk was ever taken on?
Source: The D&O Diary — “More About ‘Silent AI’ and Follow-On D&O Litigation” (Aug 10, 2026)