August 2nd, 2024

Chipmaker Nvidia reportedly under DOJ antitrust investigation

Nvidia is under investigation by the U.S. DOJ for alleged antitrust violations in the AI chip sector, focusing on market dominance, customer threats, and product bundling practices.

Read original articleLink Icon
Chipmaker Nvidia reportedly under DOJ antitrust investigation

Nvidia is reportedly under investigation by the U.S. Department of Justice (DOJ) following complaints from its competitors regarding alleged antitrust violations. The investigation focuses on claims that Nvidia has abused its market dominance in the AI chip sector. Reports indicate that the DOJ has contacted companies such as Advanced Micro Devices (AMD) and various AI chip startups to gather information on these complaints. Allegations include Nvidia threatening customers who purchase from competitors and concerns that Nvidia may raise prices or limit chip availability for customers who also buy from rival firms. Additionally, there are claims that Nvidia has bundled its products in a way that disadvantages customers who do not buy multiple items together. The DOJ is also examining Nvidia's acquisition of AI software startup Run:ai to determine if it affects the use of non-Nvidia graphics processing units (GPUs). In response, Nvidia stated that it competes fairly based on innovation and investment, asserting compliance with all laws and emphasizing customer choice. The DOJ's investigation aligns with a broader scrutiny of potential anti-competitive behavior in the AI industry, which also includes companies like Microsoft and OpenAI.

Related

Nvidia slides 13% in three days after briefly becoming most valuable company

Nvidia slides 13% in three days after briefly becoming most valuable company

Nvidia's stock dropped 13% in three days after being the most valuable company. Other tech firms like Super Micro Computer and Dell also saw stock declines. Despite this, Nvidia's value tripled in a year. Analysts predict high demand for Nvidia's AI chips and see a buying opportunity for investors.

Antitrust: Europe's Vestager warns Microsoft, OpenAI 'the story is not over'

Antitrust: Europe's Vestager warns Microsoft, OpenAI 'the story is not over'

The European Commission, under Margrethe Vestager, scrutinizes Microsoft's OpenAI partnership for potential monopolistic practices. Concerns include undue influence, impact on competitors, and anticompetitive behavior in the AI industry. Regulatory scrutiny extends to Google and Apple.

Nvidia Adds Record $329B in Value as Volatility Soars

Nvidia Adds Record $329B in Value as Volatility Soars

Nvidia's stock has seen extreme volatility, adding $329 billion in market cap after a 13% rally. Investor sentiment fluctuates amid concerns over AI profitability and potential Federal Reserve rate cuts.

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

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.

Nvidia forecast to bounce back in China to make $12B selling GPUs

Nvidia forecast to bounce back in China to make $12B selling GPUs

Nvidia is expected to generate $12 billion in GPU sales in China this year, despite U.S. trade restrictions, with over 1 million H20 GPUs shipped, nearly doubling Huawei's sales.

Link Icon 2 comments
By @sthlmb - 3 months
Consider me shocked
By @hulitu - 2 months
> Chipmaker Nvidia reportedly under DOJ antitrust investigation

Titan against the titan.

The 3 monopolies, Meta, Microsoft and Google, united against the fourth. /s