Nvidia Faces DOJ Antitrust Probe Amidst Rival Complaints In AI Chip Market
According to The Information, Nvidia is allegedly the subject of an investigation by the US Department of Justice as a result of complaints from rival companies about purported antitrust violations in the AI chip industry.
To obtain information on these complaints, the DOJ has contacted competitors, including AMD. Researchers are looking into whether Nvidia charges more to clients who wish to buy AI chips from rival companies like AMD. They are also looking into allegations that Nvidia coerces clients into purchasing more goods, such as cables for connecting servers.
In response to the report, a spokesperson for Nvidia stated that the company “wins on merit.” They emphasised that Nvidia competes through long-term investments and innovation, complies with all laws, and makes its products widely available, ensuring customers can choose the best solutions for their needs. The spokesperson also mentioned that Nvidia is willing to provide any information regulators require.
Both Nvidia and the DOJ were unavailable for immediate comment when contacted by CNBC.