Nvidia CEO Jensen Huang speaks during Computex 2024 in Taipei on June 4, 2024.
I-hwa Cheng | AFP | Getty Images
The U.S. Department of Justice is investigating complaints that Nvidia allegedly abused its market dominance in artificial intelligence chips, The Information reported.
The DOJ has reached out to Nvidia’s competitors such as AMD to gather information about the complaints, according to the report published on Thursday.
Investigators are looking at whether Nvidia charges its customers higher prices for products if that customer wants to buy AI chips from rivals such as AMD, the report said.
The DOJ is also looking at whether Nvidia has pressured customers to buy additional products such as cables that connect servers together, The Information reported.
In response to the report, a spokesperson for Nvidia said the company “wins on merit.”
“We compete based on decades of investment and innovation, scrupulously adhering to all laws, making NVIDIA openly available in every cloud and on-prem for every enterprise, and ensuring that customers can choose whatever solution is best for them,” the spokesperson said.
They added that Nvidia is “happy to provide any information regulators need.”
Nvidia and the DOJ were not immediately available for comment when contacted by CNBC.
Nvidia shares dipped 3.5% in premarket trade amid a global sell-off in semiconductor stocks.
Read the full report here.
https://www.cnbc.com/2024/08/02/nvidia-shares-fall-after-report-that-it-faces-a-us-doj-antitrust-probe.html
