Nvidia is reportedly the focus of a Justice Department antitrust investigation looking into whether the firm has abused its dominant position in the market for artificial intelligence chips.
The Justice Department is investigating complaints that Nvidia charges higher prices if customers also buy chips from its rivals and that the company pressures buyers of its chips to also buy other products like cables, CNBC reported Friday (Aug. 2), citing a paywalled article by The Information.
A spokesperson for Nvidia said the company “wins on merit” and is happy to provide information to regulators, according to the report.
“We compete based on decades of investment and innovation, scrupulously adhering to all laws, making Nvidia openly available in every cloud and on-prem for every enterprise, and ensuring that customers can choose whatever solution is best for them,” the spokesperson said, per the report.
Sen. Elizabeth Warren Massachusetts is among those who have called on the Justice Department to investigate Nvidia, citing competition concerns, Reuters reported Friday.
In addition, French antitrust enforcers are preparing to bring charges against Nvidia, targeting the company’s bundling of its products, according to the report.
It was reported in July that the surge in demand for Nvidia’s chips used in AI and computer graphics has prompted regulatory scrutiny.
In a regulatory filing last year, the company said that regulators from the European Union, the United States and China had requested information regarding its graphics cards.
In a 10-Q filing, Nvidia said: “Our position in markets relating to AI has led to increased interest in our business from regulators worldwide, including the European Union, the United States and China.”
It was reported in June that Nvidia has a market share of greater than 80% in AI chips.
Nvidia CEO Jensen Huang said during a company shareholder meeting in June that Nvidia has taken several steps to maintain its dominant position in the market, including transforming from a gaming-focused company to a data center-focused one; partnering with computer makers and cloud providers to create new markets for its AI; and offering chips whose performance and operating costs make them a better value than others that may be cheaper to buy.
For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More