09/04/2024

Nvidia Faces Two DOJ Antitrust Probes

According to officials, the probes relate to market dominance

The U.S. Department of Justice (DOJ) has reportedly launched two separate probes into Nvidia regarding antitrust concerns about the computing giant’s AI-focused business dealings. The first investigation,  reported by Politico, will see the DOJ examine Nvidia’s buyout of Run:ai, while the second, as reported by The Information, will assess if Nvidia abused its dominance in AI chips to discourage customers from using competing products.

In April, Nvidia reportedly spent $700 million to acquire Run:ai, the Israeli startup specializing in GPU management software. While specific concerns surrounding the Run:ai purchase haven’t been disclosed, both U.S. and international regulators have closely scrutinized big tech acquisitions of late over issues like anticompetitive business practices and market monopolies. AI acquisitions have been of particular interest, with a joint statement issued by major U.S., EU, and UK regulators in July pledging to “safeguard against tactics that would undermine fair competition or lead to unfair or deceptive practices in the AI ecosystem."

The second investigation being launched by the DOJ comes in response to complaints from competitors. It will examine whether Nvidia abused its market dominance to pressure cloud providers into buying its products. The probe will also investigate claims that Nvidia overcharges its customers for networking equipment if they opt to purchase AI chips from rival companies like AMD and Intel.

Please select this link to read the complete article from The Verge.