The US Department of Justice (DOJ) has initiated two separate investigations into Nvidia concerning antitrust issues related to the company’s AI-focused business dealings.
The first probe, reported by Politico, scrutinizes Nvidia’s acquisition of Run:ai, while the second, highlighted by The Information, examines whether Nvidia has leveraged its dominance in AI chips to discourage customers from using competitors’ products.
In April, Nvidia acquired Run:ai, an Israeli startup specializing in GPU management software, for $700 million. While specific concerns regarding this purchase remain undisclosed, it follows a broader trend of regulatory scrutiny over significant tech acquisitions due to potential anticompetitive practices and market monopolies. AI acquisitions, in particular, have drawn attention, with a joint statement from US, EU, and UK regulators in July emphasizing the need to protect fair competition and prevent deceptive practices in the AI industry.
The second DOJ investigation responds to complaints from Nvidia’s competitors. It will determine whether Nvidia misused its market dominance to compel cloud providers to purchase its products. This probe will also explore allegations that Nvidia overcharges customers for networking equipment if they choose to buy AI chips from rival companies like AMD and Intel.
Nvidia spokesperson Mylene Mangalindan addressed these concerns in a statement to Politico, asserting that Nvidia competes based on extensive investment and innovation, complies with all laws, and offers its products across various cloud and on-premises platforms. Mangalindan emphasized Nvidia’s commitment to supporting innovators in every industry and its willingness to cooperate with regulatory inquiries.
Nvidia controls an estimated 70 to 95 percent of the market for chips essential for training AI models, a dominance that has attracted scrutiny from global regulators. Last month, Reuters reported that Nvidia might face French antitrust charges for alleged anti-competitive practices. In June, Nvidia briefly surpassed Microsoft to become the world’s most valuable company, driven by the surging demand for AI technology.
