(Reuters) – U.S. progressive groups and Democratic Senator Elizabeth Warren pressed the Department of Justice to investigate Nvidia over competition concerns, citing the company’s dominance of the market for the chips driving the artificial-intelligence boom. This potential Nvidia antitrust investigation aims to address concerns about monopolistic behavior and its impact on innovation. #NvidiaAntitrustInvestigation
Demand Progress and nine other groups urged DOJ antitrust chief Jonathan Kanter to investigate Nvidia’s business practices. Nvidia’s market value reached $3 trillion this summer due to high demand for chips running generative AI models. The letter highlighted concerns over Nvidia’s market dominance and its impact on competition.
The groups, opposing monopolies and advocating for tech oversight, criticized Nvidia’s bundling of software and hardware. French antitrust enforcers have flagged this practice. They are preparing to bring charges against Nvidia for these anticompetitive actions.
“This aggressively proprietary approach, which is strongly contrary to industry norms about collaboration and interoperability, acts to lock in customers and stifles innovation,” the groups wrote.
In June, Reuters reported that U.S. regulators assigned the Justice Department to oversee potential antitrust probes into Nvidia. Meanwhile, the Federal Trade Commission is examining Microsoft and OpenAI. #NvidiaAntitrustInvestigation
An Nvidia spokesperson said the company spent billions of dollars developing AI-capable computing technology before demand existed, and is “committed to opening new markets and growth opportunities for our partner ecosystem.”
If an antitrust investigation proceeds, it could reshape how Nvidia operates. Ultimately, this scrutiny could lead to increased transparency and more competitive practices in the tech sector.
