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Nvidia Is Facing An Antitrust Probe From US Regulators Amid Competitor Complaints, Report Says
NEW YORK — Antitrust tensions are rising in the chipmaking business. Rivals have accused Wall Street favourite Nvidia of abusing its market dominance in the sale of processors that fuel artificial intelligence, and the US Justice Department is now looking into the allegations, according to technology news site The Information.
According to the news outlet, which cited unnamed sources involved with the negotiations, Justice Department authorities are investigating claims that Nvidia may be cornering the market and forcing its customers to unfairly retain business. This includes charges that Nvidia has threatened to punish customers who purchase items from the Santa Clara, California-based computer company and its competitors.
Nvidia Is Facing An Antitrust Probe From US Regulators Amid Competitor Complaints, Report Says
The Information also alleged that US officials had contacted other competitors about the complaints.
However, they stated it “wins on merit” and competes “based on decades of investment and innovation, scrupulously adhering to all laws.”
Without addressing the specifics of The Information’s Thursday report, the business stated it is “happy to provide any information regulators need.”
The company has already been requested for an antitrust investigation by Democratic politicians and progressive groups. Earlier this week, ten progressive advocacy groups, including the Demand Progress Education Fund and the Tech Oversight Project, sent a letter to Assistant Attorney General Jonathan Kanter urging an antitrust inquiry into the chipmaker.
“Nvidia is the world’s chip gatekeeper,” the groups said, claiming the corporation had “bullied its way into a prominent investment position” by leveraging restricted supply and employing practices such as preventing customers from conducting business with competitors. “Such a company deserves the most aggressive scrutiny that the Department of Justice can bring to bear.”
Nvidia Is Facing An Antitrust Probe From US Regulators Amid Competitor Complaints, Report Says
Nvidia has reinforced its position as a poster child for the artificial intelligence boom while also becoming one of the world’s most valuable firms. In June, the tech titan momentarily had a market capitalisation of more than $3.3 trillion.
Some of that market momentum has slowed since then, and any stock that reaches such heights is vulnerable to some investors dumping shares to lock in profits. On Friday afternoon, Nvidia’s stock was down 3%.
SOURCE | AP
