The US Department of Justice (DOJ) has initiated an investigation into Nvidia, the leading manufacturer of artificial intelligence (AI) chips, amid concerns over potential antitrust violations.
According to sources, the DOJ is examining whether Nvidia abused its market dominance by pressuring cloud providers to purchase multiple Nvidia products. Additionally, investigators are looking into allegations that Nvidia charges customers a higher price for networking gear if they choose to buy AI chips from rival companies.
Nvidia, which commands roughly 80% of the AI chip market, has faced criticism from competitors and advocacy groups over its business practices. The company’s bundling of software and hardware has been flagged as a potential issue by French antitrust enforcers, who are preparing to bring charges.
In response to the investigation, Nvidia stated that it would cooperate fully with regulators and provide any necessary information. A spokesperson for the company emphasized that Nvidia competes lawfully and innovatively, adhering to all applicable laws.
The DOJ’s investigation reflects growing scrutiny of tech companies and their business practices, with a focus on promoting competition and preventing monopolies. As the probe continues, Nvidia’s market dominance and practices will be closely examined.
