Nvidia faces US DOJ probe over complaints from rivals: The Information
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The news: The US Department of Justice (DOJ) is investigating complaints that Nvidia is allegedly abusing its market dominance in selling chips that power artificial intelligence, The Information reported.
The context: Employees of some Nvidia customers told The Information they fear that if their companies also bought AI chips, known as graphics processing units (GPUs), from competing firms such as Advanced Micro Devices, Nvidia might charge them higher prices or restrict volumes it would sell to them.
DOJ antitrust officials are also investigating whether the tech giant has pressured some of its chip customers to buy additional Nvidia products, such as the networking cables that connect servers to one another, said people involved in the discussions.
A representative of one Nvidia's rival told the DOJ that customers who bought chips and cables from Nvidia paid a lower price for each product, as part of a bundle than they would if they only bought one of the products.
A representative from another Nvidia rival claimed that Nvidia restricted the number of chips a customer could obtain if it did not also buy additional Nvidia products.
In recent weeks, US officials have reached out to a number of Nvidia's competitors to gather information about the complaints, according to two people involved in the discussions. Allegations range from claims that Nvidia has threatened to punish customers who also buy products from its competitors, to concerns about its acquisition of startups that strengthen its grip on the software AI developers use.
The source: The Information
