Aug 1 (Reuters) - The U.S. Department of Justice (DOJ)
has launched an investigation into Nvidia ( NVDA ) after
complaints from competitors that it may have abused its market
dominance in selling chips that power artificial intelligence,
The Information reported on Thursday.
DOJ investigators are looking at whether Nvidia ( NVDA ) pressured
cloud providers to buy multiple Nvidia ( NVDA ) products, the report
said, citing people involved in the discussions.
The investigation is also looking into whether Nvidia ( NVDA )
charges its customers a higher price for networking gear if the
customer wants to buy AI chips from rivals such as Advanced
Micro Devices ( AMD ) and Intel ( INTC ), the report added.
Nvidia ( NVDA ) commands roughly 80% of the AI chip market.
"We compete based on decades of investment and innovation,
scrupulously adhering to all laws, making Nvidia ( NVDA ) openly
available in every cloud and on-prem for every enterprise, and
ensuring that customers can choose whatever solution is best for
them," an Nvidia ( NVDA ) spokesperson said in a statement to Reuters.
The DOJ did not immediately respond to Reuters' requests for
comment late Thursday.
The report said that investigators have reached out to
several Nvidia ( NVDA ) competitors to gather more details.
U.S. progressive groups and Democratic Senator Elizabeth
Warren have pressed the DOJ to investigate Nvidia ( NVDA ) over
competition concerns.
The groups, which oppose monopolies and promote government
oversight of tech companies, among other issues, took aim at
Nvidia's ( NVDA ) bundling of software and hardware, a practice that
French antitrust enforcers have flagged as they prepare to bring
charges.