August 1st, 2024

Bring the hammer down on Nvidia, US progressive and antitrust orgs urge the Feds

Advocacy groups are urging the U.S. DoJ to investigate Nvidia for monopolistic practices, citing its market dominance and potential harm to competition and innovation, while Nvidia claims compliance with regulations.

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Bring the hammer down on Nvidia, US progressive and antitrust orgs urge the Feds

Numerous advocacy groups are urging the U.S. Department of Justice (DoJ) to investigate Nvidia for potential monopolistic practices. A letter signed by representatives from ten nonprofit organizations claims that Nvidia's significant market share—reportedly 80% in GPUs and 98% in datacenter GPUs—allows it to dominate competitors and influence pricing and trade terms. The organizations, which include both left-leaning political advocacy groups and those focused on antitrust issues, argue that Nvidia's practices could harm consumer choice and innovation. They also criticize Nvidia's proprietary CUDA programming environment, suggesting it limits competition. The letter aligns with the Biden administration's tough stance on tech companies and raises concerns about Nvidia's sales to China, which some groups believe should be illegal. While the letter serves as a lobbying effort, it is uncertain whether it will influence the DoJ's decision on whether to pursue an investigation, as discussions about a potential inquiry have been ongoing since June. Nvidia has responded to the allegations, asserting that it complies with all regulations and promotes growth and innovation in the tech sector. The company emphasizes its commitment to making its technologies accessible across various platforms. Additionally, there are indications that Nvidia may face scrutiny from European regulators, as the EU's Competition Commissioner has begun preliminary inquiries into the company's practices.

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Link Icon 2 comments
By @TechnicolorByte - 3 months
Seems silly. Nvidia focused on the market several years ago while other players fumbled the bag with multiple startup buyouts and no coherent execution plan (Intel) or were too focused on the wrong product with x86 CPUs (AMD). Never mind all the failed AI hardware startups who believed an ASIC optimized for ResNet and early DL models would somehow be in play as the market evolved to Transformers.

Nvidia played the long game, focused on enough generalization to be useful for future models and opening their software brought such that other players could write frameworks/compilers for them. Nvidia also supports x86 CPUs in their servers (they don’t lock it to their Grace CPU AFAIK) and allow Ethernet fabrics (not locking it to their infiniband).

Now AMD’s GPU division is doing what they do best: slowly copying Nvidia’s execution and catching up on software, which means they’ll always play second fiddle.

How is any of that antitrust?

By @jacooper - 3 months
For what? It's like suing apple after the first iPhone. I am all for anti trust action against big tech, but this is too much, Nvidia just has a better product, and it seems AMD is catching up right now, at least if their sales indicate anything.