On Tuesday, Nvidia defended its practices in the competitive market for artificial intelligence (AI) chips, following reports that the US government is investigating whether the company has exploited its dominant position.
A spokesperson for the Silicon Valley-based chipmaker responded to an AFP inquiry, stating that Nvidia’s success is based on merit, reflected in its performance benchmarks and the value provided to customers who can choose the best solution for their needs.
Despite the availability of alternative options for chip buyers, Nvidia is widely regarded as the technology leader in AI chips, even as competitors strive to catch up.
Reports from Bloomberg and other media outlets indicate that US antitrust officials are intensifying their investigation into whether Nvidia has made it difficult for customers to switch to rival GPUs or other chips for AI applications. The probe reportedly involves legally binding questions sent to Nvidia and other companies in the chip industry.
The US Department of Justice has not yet responded to requests for comment on the investigation.
Nvidia’s AI chips and software are critical to the operations of some of the world’s largest technology companies, including Microsoft, Google, Meta, Tesla, and Amazon. These companies rely on Nvidia technology to develop and deploy AI models like ChatGPT. These companies have invested tens of billions of dollars in Nvidia’s products to handle the demanding computing tasks required for generative AI.
Nvidia recently reported quarterly sales of $30 billion, exceeding expectations, although the growth rate was slower than in previous quarters. This news came as Nvidia’s share price dropped by 8% on Monday, amid concerns about the sustainability of the AI boom in the context of a slowing US economy.
