Tech giant Nvidia is facing growing scrutiny from US regulators. The Department of Justice (DOJ) has opened two separate antitrust investigations into the company.
Nvidia accounts for 80% of the global AI chip market share. Photo: Yahoo Finance.
The first probe centers around Nvidia’s April acquisition of Israeli startup Run:ai. The startup specializes in optimizing GPU usage, a technology that could potentially reduce the demand for Nvidia’s chips. The DOJ is investigating whether the acquisition was aimed at suppressing competition.
The second investigation focuses on Nvidia’s broader market dominance in the AI chip sector. The DOJ is examining allegations that the company has abused its market power through anti-competitive practices. This includes potential bundling of products, exclusive deals, and pressure tactics on customers to favor Nvidia over competitors.
These investigations come amidst a broader focus on antitrust enforcement in the tech industry. As the demand for AI chips surges, regulators are increasingly concerned about the potential for market concentration and its impact on innovation and consumer prices.
The outcome of these investigations could have significant implications for Nvidia and the broader tech industry. It remains to be seen how the company will respond to these challenges and whether it will face any substantial penalties.
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