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Nvidia has faced calls for an antitrust investigation from Massachusetts Democratic Senator Elizabeth Warren and several progressive groups who say Nvidia is violating antitrust laws. Artificial Intelligence (AI) The dominance of major companies in the AI chip market.
of AI giant The company has about 80% of the market share, and rising demand for AI has pushed its market cap to more than $3 trillion this summer. Excluding the rest of the market, which is largely rented out to customers by cloud-computing companies like Google, Microsoft and Amazon Web Services, Nvidia’s market share is closer to 100%.
Warren and 10 other progressive groups, including Demand Progress, sent a letter this week to Justice Department antitrust director Jonathan Cantor urging him to investigate Nvidia’s business practices, citing concerns that the company’s bundling of software and hardware products used to run the complex models that train generative AI could stifle competition.
“This aggressive, proprietary approach runs counter to industry standards for collaboration and interoperability, locks in customers and stifles innovation,” the groups wrote.
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Sen. Elizabeth Warren and other progressives have challenged Nvidia’s outsized influence in the AI chip market. (Ting Shen/Bloomberg via Getty Images | Justin Sullivan/Getty Images)
“Allowing one company to effectively become the gatekeeper of the world’s AI future is dangerous and poses serious economic risks,” Warren added in a statement to Reuters.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| NVDA | NVIDIA Inc. | 109.21 | -7.81 |
-6.67% |
In a statement to Fox Business, an Nvidia spokesperson said the company believes “the regulatory system is working as intended, stimulating growth and investment in breakthrough technologies,” noting the company’s long-term investments in AI-enabling technologies.
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Nvidia CEO Jensen Huang showed off the company’s AI technology during the trade conference. (Justin Sullivan/Getty Images)
“As Moore’s Law “As the development of AI supercomputers neared its end, we created an entirely new computing model and invited researchers, scientists, developers, ecosystem partners, customers and employees to join us in exploring what was once a billion-dollar market,” the company said. “When we released DGX1 in 2016 and provided OpenAI with its first AI supercomputer, few people understood why we were building a multi-billion-dollar solution.”
“Today, accelerated computing is sustainable computing. Every application that can be accelerated should move forward, and we are committed to opening up new markets and growth opportunities for our partner ecosystem. Regulators need not worry; we will strictly comply with all laws and ensure that NVIDIA Openly available on any cloud “We can offer this to any business, both on-premise and in the cloud. We will continue to support companies looking to innovate across industries and markets, and are happy to provide any information regulators need,” Nvidia added.
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Senator Elizabeth Warren joined progressive groups in calling for an antitrust investigation into Nvidia. (Chip Somodevilla/Getty Images)
Reuters reported in June that U.S. regulators had warned that the Department of Justice was a potential NVIDIA Antitrust InvestigationMeanwhile, the Federal Trade Commission will be investigating Microsoft and OpenAI.
Nvidia stock price Nvidia shares were down more than 6% by early Thursday afternoon after the news and a small market-wide sell-off caused the S&P 500 to fall about 1.5%. Despite these headwinds, Nvidia shares are up more than 127% this year.
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Reuters contributed to this report.
