DOJ Launches Two Antitrust Probes Into Nvidia Over AI Chip Market Dominance and $700M Acquisition

Aug 2, 2024, 04:04 AM

U.S. progressive groups, including Demand Progress, and Democratic Senator Elizabeth Warren have called on the Department of Justice (DOJ) to investigate Nvidia over competition concerns. The calls focus on Nvidia's dominance in the AI chip market, where it holds roughly 80% of the market share, including custom AI processors made by companies like Google and Microsoft. The DOJ has launched two separate investigations into Nvidia following complaints from competitors, alleging that the company may have abused its market dominance. The investigation also extends to Nvidia's $700 million acquisition of an Israeli AI start-up. Nvidia's shares have fallen by 2.3% in Frankfurt and 3.4% premarket following the news of the probe. The DOJ is reportedly reaching out to Nvidia's rivals, including AMD and chip startups, to gather more information. France is also considering an examination of Nvidia's practices. Nvidia has stated it is willing to cooperate with the investigation.