Reports suggest that Nvidia, a dominant firm in the artificial intelligence chip market with approximately 80% of the market share, is under investigation by the US Department of Justice (DOJ). The inquiry stems from competitors’ accusations that Nvidia potentially misused its influential market position in chip sales. Allegedly, the firm may have coerced cloud service providers into purchasing several of its products.
Moreover, the investigation is examining if Nvidia levies higher charges for networking equipment if customers wish to procure AI chips from competitors such as Intel and Advanced Micro Devices. It has also been reported that DOJ investigators have initiated communication with several rival firms of Nvidia to gather further particulars.
While Nvidia refrained from commenting directly on the DOJ’s investigation, they reassured willing cooperation with the authorities, stating they would provide all necessary data. A representative from Nvidia has emphasised their commitment to fair competition, maintaining they operate legally and invest heavily in innovation.
Interestingly, the firm has recently faced scrutiny from US progressive groups and Democratic senator Elizabeth Warren due to competition concerns. Nvidia’s bundling of software and hardware has drawn criticism from those advocating for government control of tech companies and anti-monopolists. It’s worth noting French antitrust regulators flagged this practice while preparing to level charges. As of now, the DOJ remains silent on any requests for comments.