NVIDIA Customers Fear Threatening Behavior For Buying AI Chips From AMD, Intel – Report
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After spending a couple of topsy turvy days on the stock market that saw its shares soar after positive earnings results from AMD and then sink the next day, NVIDIA is now purportedly facing investigations from the Justice Department that accuse it of unfairly using its dominant market position to drive customer bargains. NVIDIA's GPUs are widely believed to be industry leaders in computing artificial intelligence workloads, and their popularity has propelled the stock to set new records in 2024.
As part of its investigations, the DOJ has asked NVIDIA's rivals, including AMD and chip design startups, for their comments. Today's report adds another round of US government scrutiny of the firm's affairs.
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NVIDIA Purportedly Being Investigated By DOJ For Bundling Other Products With AI GPUs
This report comes from The Information, which alleges that NVIDIA has engaged in a variety of anti competitive practices for its AI products. According to the details, these include threatening customers if they buy AI products from rivals, acquiring startups with the sole aim of increasing their influence in the AI industry, bundling other products such as networking cables with the AI GPUs and raising prices of GPUs or withholding inventory if customers also buy from rivals.
NVIDIA's primary rival in the AI accelerator is AMD, which is the only firm that is shipping AI accelerators on scale. The other rival, Intel, is yet to ship its Gaudi accelerator in volume with estimates suggesting that these shipments could take place later this year.
NVIDIA's statement outlined its years-long effort to invest in AI products and added that its actions not only adhere to legal requirements but also allow its customers to choose their GPU suppliers
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