U.S. regulators urged to investigate Nvidia over antitrust concerns

The U.S. Department of Justice has been urged to probe Nvidia over competition concerns, given the dominance of the Santa Clara-based company in the market for advanced chips.

Progressive groups, backed by Sen. Elizabeth Warren (D-Mass.), have penned a letter to antitrust chief Jonathan Kanter to open an investigation into the business activity of the chip maker. 

Demand Progress and nine other entities campaign for government scrutiny and proper governance to be applied to tech firms. They stand against monopolies in business and now Nvidia is attracting its attention. In particular, the bundling of software and hardware has drawn the ire of the groups. 

“This aggressively proprietary approach, which is strongly contrary to industry norms about collaboration and interoperability, acts to lock in customers and stifles innovation,” said the groups’ statement.

In a communication to Reuters, Sen. Warren added weight to the case against Nvidia and its control of the chip market, with around 80% coverage including agreements with the likes of Google, Microsoft, and Amazon. 

“Allowing a single company to effectively be the gatekeeper for the world’s AI future is dangerous and poses dire economic risks. The DOJ is right to investigate Nvidia’s anti-competitive practices,” said Warren.

Nvidia says regulators have no reason to be concerned

In June this year, Nvidia saw its market value exceed $3 trillion, briefly ousting Microsoft as the world’s most valuable firm. Led by the colorful Jensen Huang as president, it produces a range of semiconductors for various purposes, but its status as the premier global supplier for chips used in AI puts the company on a pedestal at the cutting edge of industry developments.

The company has rebuffed the fears expressed, supporting its achievement to get ahead of the curve on AI-capable technology before the demand for commodities existed. Nvidia said it was happy to assist regulators to provide any information required. 

“Regulators need not be concerned, as we scrupulously adhere to all laws and ensure that Nvidia is openly available in every cloud and on-prem for every enterprise,” said a spokesperson. 

“We’ll continue to support aspiring innovators in every industry and market and are happy to provide any information regulators need.”

Image credit: Via Ideogram

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