Why US has launched antitrust probe into NVIDIA
What's the story
The US Department of Justice (DOJ) has initiated an antitrust investigation into NVIDIA, the world's leading AI chip manufacturer.
The probe was triggered by complaints from NVIDIA's rivals, alleging potential misuse of its market dominance in the AI chip sector.
The DOJ is specifically investigating claims that NVIDIA may have pressured cloud providers to buy multiple products from them.
Pricing scrutiny
Allegations of unfair pricing practices
The DOJ's probe also includes allegations that NVIDIA may have charged customers more for networking gear if they showed interest in purchasing AI chips from competitors like Advanced Micro Devices and Intel.
These claims are part of the broader investigation into potential antitrust violations by NVIDIA, which recently beat Apple and Microsoft to become the world's most valuable company.
Currently, NVIDIA controls an estimated 80% of the AI chip market, underscoring its significant influence in this industry.
Company response
NVIDIA responds to DOJ's antitrust investigation
In response to the DOJ's investigation, an NVIDIA spokesperson stated, "We compete based on decades of investment and innovation, scrupulously adhering to all laws."
The spokesperson further emphasized that the company is openly available in every cloud and on-prem for every enterprise.
They also insisted that customers are free to choose whatever solution they deem best for their needs.