Nvidia has benefitted hugely from the AI boom, with share prices going through the roof as a result of vast chip sales. Now, the US Department of Justice has raised some concerns around Nvidia's dominance in the AI chip market.
As reported by The Information, the DOJ is said to be investigating whether Nvidia may have abused its market dominance, based on complaints from competing companies. Part of the investigation will focus on a claim that Nvidia charges more for networking gear if the customer is planning to use a competing company's chips.
Nvidia has not yet publicly commented on the report and neither has the DOJ. However, an Nvidia spokesperson did tell Reuters that it would cooperate with regulators, adding that Nvidia competes “based on decades of investment and innovation, scrupulously adhering to all laws”.
These investigations often take many months, so it could be a while before we get a new update.
Discuss on our Facebook page, HERE.
KitGuru Says: We'll keep an eye out for more updates on this in the months to come.