Nvidia faces two DOJ antitrust probes over market dominance

The US Department of Justice (DOJ) has reportedly launched 2 abstracted probes into Nvidia regarding antitrust concerns astir the computing giant’s AI-focused concern dealings. The archetypal investigation, reported by Politico, volition spot the DOJ analyse Nvidia’s buyout of Run:ai, while the second, arsenic reported by The Information, volition measure if Nvidia abused its dominance successful AI chips to discourage customers from utilizing competing products.

In April, Nvidia reportedly spent $700 cardinal to get Run:ai, the Israeli startup specializing successful GPU absorption software. While circumstantial concerns surrounding the Run:ai acquisition haven’t been disclosed, both US and international regulators person intimately scrutinized large tech acquisitions of precocious implicit issues similar anticompetitive concern practices and marketplace monopolies. AI acquisitions person been of peculiar interest, with a associated connection issued by large US, EU, and UK regulators successful July pledging to “safeguard against tactics that would undermine just contention oregon pb to unfair oregon deceptive practices successful the AI ecosystem.”

The 2nd probe being launched by the DOJ comes successful effect to complaints from competitors. It volition analyse whether Nvidia abused its marketplace dominance to unit unreality providers into buying its products. The probe volition besides analyse claims that Nvidia overcharges its customers for networking instrumentality if they opt to acquisition AI chips from rival companies like AMD and Intel.

“We vie based connected decades of concern and innovation, scrupulously adhering to each laws, making Nvidia openly disposable successful each unreality and on-prem for each enterprise, and ensuring that customers tin take immoderate solution is champion for them,” Nvidia spokesperson Mylene Mangalindan said successful a connection to Politico. “We’ll proceed to enactment aspiring innovators successful each manufacture and marketplace and are blessed to supply immoderate accusation regulators need.”

Nvidia is estimated to power betwixt 70 percent and 95 percent of the marketplace for chips needed to bid AI models. Nvidia’s dominance has drawn ire from different planetary regulators, with Reuters reporting past period that the institution whitethorn look French antitrust charges for alleged anti-competitive practices. In June, Nvidia concisely overtook Microsoft arsenic the world’s astir invaluable company, a feat mostly propelled by booming request for AI technology.