The US Department of Justice has launched an investigation into Nvidia after complaints from competitors that it may have abused its market dominance in selling chips that power artificial intelligence, The Information reported on Thursday.
Shares of the company fell around 3.6% in premarket trading on Friday.
DOJ investigators are looking at whether Nvidia pressured cloud providers to buy multiple products, the report said, citing people involved in the discussions.
The investigation is also looking into whether Nvidia charges its customers more for networking gear if they want to buy AI chips from rivals such as Advanced Micro Devices and Intel, it added.
Nvidia commands roughly 80% of the AI chip market.
The company did not comment on the report, but said that it would provide any information that regulators require.
“We compete based on decades of investment and innovation, scrupulously adhering to all laws, making Nvidia openly available in every cloud and on-prem for every enterprise, and ensuring that customers can choose whatever solution is best for them,” a Nvidia spokesperson said in a statement to Reuters.
The DOJ did not immediately respond to Reuters’ request for comment late Thursday.
The report said that investigators have reached out to several of Nvidia’s competitors to gather more details.
US progressive groups and Democratic Senator Elizabeth Warren have pressed the DOJ to investigate Nvidia over competition concerns.
The groups, which oppose monopolies and promote government oversight of tech companies, among other issues, took aim at Nvidia’s bundling of software and hardware, a practice that French antitrust enforcers have also flagged as they prepare to bring their own charges.
First Published: Aug 02 2024 | 11:20 PM IST
