US senator calls for DOJ probe into Nvidia’s market dominance

The company defends its practices, claiming compliance with all laws and a commitment to fostering market growth.
While fiber optics can transfer data faster than copper, Huang insists that Nvidia will not use it for GPUs until reliability improves significantly.

US progressive groups and Senator Elizabeth Warren have called on the Department of Justice to investigate Nvidia for potential anti-competitive practices, citing the company’s dominant position in the AI chip market. Nvidia’s market value surged to $3 trillion this summer, driven by high demand for its advanced chips used in AI models. The groups, including Demand Progress, criticised Nvidia’s bundling of hardware and software, arguing that it restricts competition and stifles innovation.

The Department of Justice has been directed to oversee potential antitrust probes into Nvidia, while the Federal Trade Commission is investigating other tech giants like Microsoft and OpenAI. Nvidia maintains that it follows all regulations and supports a wide range of industries and innovators.

With approximately 80% of the AI chip market and nearly 100% of the market excluding cloud providers’ custom chips, Nvidia’s dominance is significant. Senator Warren has expressed concerns about the risks of a single company controlling the AI market. The Department of Justice has not commented on the case’s specifics, but antitrust officials are concerned about potential bottlenecks in the industry.