DOJ Launches Antitrust Probe into Nvidia Over AI Chip Market Dominance and $700 Million Acquisition

Aug 2, 2024, 12:59 AM

The U.S. Department of Justice (DOJ) has launched an antitrust investigation into Nvidia following complaints from competitors about the company's market dominance in AI chips. The probe is driven by concerns from progressive groups, lawmakers, and rivals, including AMD and chip startups, who allege that Nvidia may have engaged in anti-competitive practices. The investigation will also examine whether Nvidia pressured cloud providers to purchase multiple Nvidia products. Additionally, the DOJ is scrutinizing Nvidia's $700 million acquisition of an Israeli AI start-up, which aims to enhance AI chip efficiency. In June, Reuters reported that U.S. regulators directed the DOJ to oversee potential antitrust probes into Nvidia. Democratic Senator Elizabeth Warren and ten other groups, including Demand Progress, have called for the DOJ to take action against Nvidia's dominance in the AI chip market.