The U.S. Department of Justice (DOJ) has reportedly launched two separate investigations into Nvidia over antitrust concerns over the computing giant’s business dealings focused on artificial intelligence. The first investigation report was made by Politicowill see the Justice Department review Nvidia’s acquisition of Run:ai, while a second, reportedly informationwill assess whether Nvidia abused its dominant position in artificial intelligence chips to prevent customers from using competing products.
According to reports, in April, Nvidia spent $700 million to acquire Run:ai, an Israeli startup that specializes in GPU management software. While the specific concerns surrounding the Run:ai acquisition have not been disclosed, U.S. and international regulators have recently been paying close attention to large technology acquisitions, involving issues such as anti-competitive business practices and market monopoly. AI acquisitions are of particular interest, with major US, EU and UK regulators issuing a joint statement in July pledging to “prevent strategies that undermine fair competition or lead to unfair or deceptive conduct in the AI ecosystem.” “
The second investigation launched by the U.S. Department of Justice was in response to a competitor complaint. It will investigate whether Nvidia abused its market dominance to force cloud providers to buy its products. The investigation will also look into allegations that Nvidia charged exorbitant fees for network equipment to customers who chose to buy artificial intelligence chips from rival companies such as AMD and Intel.
Nvidia spokesperson Myne Mangalindan said: “Our competition is based on decades of investment and innovation, strict compliance with all laws, making Nvidia publicly available in every cloud and on-premises in every enterprise, and ensuring customers can choose what’s best for them. s solution. Politico. “We will continue to support aspiring innovators in every industry and market and are happy to provide any information regulators require.”
Nvidia is estimated to control 70% to 95% of the market for chips needed to train AI models. Nvidia’s dominance draws ire from other global regulators Reuters Reports last month suggested the company could face French antitrust charges over alleged anti-competitive behavior. In June this year, Nvidia briefly surpassed Microsoft to become the world’s most valuable company, a feat largely driven by booming demand for artificial intelligence technology.
