US Department Of Justice Probe Nvidia For Abusing Market Dominance On Rivals' Complaints
The software company commands 80 percent of the AI chip market
By: : Daniel
Update: 2024-08-02 03:00 GMT
US Department Of Justice Probe Nvidia For Abusing Market Dominance On Rivals' Complaints
The Software Company Commands 80 percent of the AI chip market
The US Department of Justice (DOJ) is investigating Nvidia after complaints from competitors that it may have abused its market dominance in selling chips that power Artificial Intelligence (AI).
The investigators are probing whether Nvidia pressured cloud providers to buy its multiple products and if it charges customers a higher price for networking gear if the customer wants to buy AI chips from rivals Advanced Micro Devices and Intel.
However, the software company’s spokespersons said, "We compete based on decades of investment and innovation, scrupulously adhering to all laws, making Nvidia openly available in every cloud and on-prem for every enterprise, and ensuring that customers can choose whatever solution is best for them.”
Meanwhile, investigators have reached out to several Nvidia competitors to gather more details.
US progressive groups and Democratic Senator Elizabeth Warren insisted on the DOJ to investigate Nvidia over competition concerns.
The groups, which oppose monopolies and promote government oversight of tech companies, took swipes at Nvidia's bundling of software and hardware – a practice that French antitrust enforcers flagged.