According to a report from The Information on Thursday, the U.S. Department of Justice (DOJ) has initiated an investigation into Nvidia following complaints from competitors alleging potential abuse of its market dominance in the sale of AI chips.
The investigation by DOJ officials focuses on claims that Nvidia may have exerted pressure on cloud providers to procure multiple Nvidia products, as stated by individuals familiar with the matter.
Additionally, the probe is reviewing allegations that Nvidia imposes higher prices for networking equipment if customers wish to purchase AI chips from competitors like Advanced Micro Devices and Intel.
Nvidia currently holds about 80% of the AI chip market share. In response to the allegations, an Nvidia spokesperson emphasized the company’s commitment to competing through significant investments in innovation, compliance with regulations, and offering accessibility of Nvidia products across various cloud platforms and enterprise environments.
As of late Thursday, the DOJ had not provided any comments on the matter. The investigative activities reportedly include reaching out to several Nvidia rivals for further insights into the situation.
Progressive groups in the U.S. and Democratic Senator Elizabeth Warren have urged the DOJ to scrutinize Nvidia over concerns related to competition.
These advocacy groups, advocating against monopolies and advocating for government oversight in the tech sector, have specifically raised objections to Nvidia’s bundling of software and hardware. This practice has also drawn attention from French antitrust regulators who are preparing to take legal action against Nvidia on similar grounds.
