The US 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 US 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 US, 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.
“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 Mylene Mangalindan said in a statement to Politico. “We’ll continue to support aspiring innovators in every industry and market and are happy to provide any information regulators need.”
Nvidia is estimated to control between 70 percent and 95 percent of the market for chips needed to train AI models. Nvidia’s dominance has drawn ire from other global regulators, with Reuters reporting last month that the company may face French antitrust charges for alleged anti-competitive practices. In June, Nvidia briefly overtook Microsoft as the world’s most valuable company, a feat largely propelled by booming demand for AI technology.
Posted from: this blog via Microsoft Power Automate.
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