Nvidia Faces US Antitrust Probe After Rivals Complaint

Nvidia Faces US Antitrust Probe: The US Department of Justice (DOJ) has launched an investigation into Nvidia after complaints from rivals. 

The company’s competitors claimed that it may have abused its market dominance in selling chips that power artificial intelligence. This was reported by The Information on Thursday. 

Nvidia Faces US Antitrust Probe

According to the report, the DOJ has reached out to Nvidia’s rivals, such as AMD, to garner proper information about the complaints, according to the report. 

Investigators are also checking if Nvidia charges its customers higher prices for products, especially if that customer wants to buy AI chips from rivals such as AMD.

There are also allegations of Nvidia threatening to punish those who buy products from the Santa Clara, California-based tech giant and its competitors. 

Nvidia Gatekeeping, A Risk To Rival’s Business

In response to the report, a spokesperson for Nvidia said the company “wins on merit.”

The spokesperson said, “We compete based on decades of investment and innovation. We scrupulously adhere to all laws, making NVIDIA openly available in every cloud and on-prem for every enterprise. We also ensure that customers can choose whatever solution is best for them.”

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However, US progressive groups and Democratic senator Elizabeth Warren are urging the justice department to investigate Nvidia further over competition concerns.

The group said, “Nvidia is the world’s chip gatekeeper. It has bullied its way into a prominent investment position by leveraging scarce supply alongside tactics like blocking customers from doing business with competitors.”

“Such a company deserves the most aggressive scrutiny that the Department of Justice can bring to bear.”