US launches antitrust probe into Nvidia over alleged market abuse

US Government investigates Nvidia over alleged anti-competitive practices

The United States Department of Justice has reportedly started an antitrust investigation into Nvidia. This investigation follows complaints about Nvidia’s alleged tactics in the AI GPU market.

It is claimed that Nvidia are using unfair practices to limit competition and force customers to buy multiple Nvidia products. The company is also alleged to be punishing customers who purchase networking gear and AI chips from rival companies.

Below is a statement that Nvidia has provided to Reuters regarding their dominant position in the AI market.

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,

– Nvidia spokesperson to Reuters.

(Nvidia Blackwell HGX B100 system)

In France, a similar investigation into Nvidia is being conducted by the Autorite de la Concurrence. Last year, French authorities raided an Nvidia offices over alleged anticompetitive practices.

This is not the first time that Nvidia has been called out for alleged anti-competitive practices in the GPU/AI market. Last year, one of their former GeForce manager called the company a “GPU Cartel” that “control all supply”.

Groq CEO Jonathan Ross has also stated that Nvidia customers often meet Nvidia’s rivals in secret to prevent retaliatory delays in AI hardware orders.

Currently, it’s unknown what the result of the US DOJ’s investigation will be. After all, the investigation has only just started. Regardless, Nvidia will need to be extra careful now that this investigation is ongoing, as Nvidia do not want to face punishment for these alleged actions.

You can join the discussion on the US’ antitrust investigation into Nvidia on the OC3D Forums.