From Investing.com: 2024-08-01 21:26:20

The U.S. Department of Justice is investigating NVIDIA Corporation for abusing its market dominance in developing advanced chips for artificial intelligence, following complaints from rivals alleging antitrust activities, including punishing customers who buy from competitors and acquiring startups to strengthen its hold on the industry.

The probe comes after reports that U.S. officials reached out to NVIDIA competitors, including Advanced Micro Devices Inc, to investigate antitrust complaints, raising concerns about potential violations of competition laws and regulations.

NVIDIA’s massive valuation spike over the past year due to increasing interest in AI has highlighted concerns over the firm potentially skirting antitrust regulations with its dominance in the sector, prompting calls from progressive groups and Sen. Elizabeth Warren for a DOJ investigation into anti-competitive behavior.

Despite the allegations, an NVIDIA spokesperson stated that the company competes based on merit and innovation, adhering to all laws and regulations, while emphasizing their decades of investment in developing advanced chips for AI programs.



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