Nvidia Corporation, renowned for its GPUs, has denied recent rumors suggesting that the US Department of Justice(DOJ) is investigating them.
This announcement comes when the speculation about potential anti trust concerns with envious dominance in the GPU market is growing, particularly because it acquired Arm Limited, which was valued at around $40 billion.
Clarifying the DOJ Enquiry
This news comes after Bloomberg reported that the DOJ has issued legally binding subpoenas to Nvidia, AMD, and Intel, raising concerns about Nvidia's dominance in the AI sector.
Nvidia further clarified that while they have been communicating with the DOJ, they only received a Civil Investigative Demand(CID), which is a much less formal request for information.
While a subpoena is a legally binding document that requires cooperation, CID is simply a request for information and doesn't indicate that it is a formal case.
Antitrust Concerns Raised Against Nvidia
Anti-trust officials are investigating if Nvidia has been engaging in anti-competitive practices. These include pressuring buyers to use its AI processors and restricting all alternative solutions.
Here are some of the specific concerns raised by the DOJ:
- Delaying orders for customers who don't solely use Nvidia's AI GPUs. According to the DOJ, this makes it difficult for customers to move toward rival processors.
- Nvidia has also been accused of integrating AI GPUs with their own networking equipment. This limits the purchasing flexibility of customers and increases the price.
- As reported on TomsHardware, the DOJ is also looking at Nvidia’s acquisition of RunAI. This company specializes in AI workload management software, and regulators are afraid that this deal could make Nvidia’s market stronger and limit customers from choosing alternatives.
Nvidia is denying all these allegations of anticompetitive behavior.
Nvidia’s refusal to get a formal subpoena is an evidential development in the ongoing investigation. While they haven't been formally accused of doing anything wrong, the DOJ’s interest in the AI industry highlights the increasing concerns about anti-trust issues in this quickly evolving sector.