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US launches Nvidia antitrust probe after rivals' complaints, The Information reports
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US launches Nvidia antitrust probe after rivals' complaints, The Information reports
Aug 1, 2024 7:18 PM

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.

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