A sign to a Nvidia office building is shown in Santa Clara, Calif., Wednesday, May 31, 2023.
Rivals have accused Wall Street darling Nvidia of abusing its market dominance in selling chips that power artificial intelligence — and the U.S. Justice Department is now investigating these complaints, technology news site The Information reported.
U.S. government is investigating Nvidia for anticompetitive practices: Report | Fortune
Rivals have accused Wall Street darling Nvidia of abusing its market dominance in selling chips that power artificial intelligence — and the U.S. Justice Department is now investigating these complaints, technology news site The Information reported.
The Justice Department is investigating Nvidia's $20 billion non-exclusive" licensing agreement with Groq to determine if it "tried to skirt antitrust scrutiny," according to the NY Times.
China significantly escalated its trade standoff with the United States Monday, saying that tech giant Nvidia, the most valuable company on the US stock market and a key provider of artificial-intelligence chips, had violated anti-monopoly laws.
As well as being a trillion-dollar, planet-dominating force in the AI chip market under a charismatic leader, semiconductor manufacturer Nvidia may also be flexing its giant business muscles in ways that abuse its competition or customers, according to the U.S. Department of Justice.
Senators Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.) opened a new investigation into NVIDIA and pressed its CEO, Jensen Huang, on whether the company’s new deal with Groq, an AI chip startup and competitor, is an attempt to skirt antitrust laws.
Nvidia violated the terms of the regulator's conditional approval for its acquisition of Mellanox Technologies, according to China's State Administration for Market Regulation.
Nvidia was found to have violated the terms of the regulator’s conditional approval of its acquisition of Israeli chip designer Mellanox Technologies, China’s State Administration for Market Regulation said in a statement, without providing further details.
Corporate conductRecallAgainst
NVIDIA recalls tablet computers due to fire hazard
NVIDIA recalled tablet computers due to a documented fire hazard.
Nvidia spent more than $2.5 million on federal lobbying this year, according to the report, while also bringing in former Intel government affairs executive and Commerce Department official Bruce Andrews as its chief external affairs officer.
Corporate conductAllegationAgainst
NVIDIA is accused of issuing false disclosures
NVIDIA is accused of issuing false disclosures misrepresenting it had not trained AI with copyrighted and biometric data.
In a similar vein, the statements in the Proxy contained material omissions because the Proxy failed to disclose the material fact that NVIDIA had trained its AI using vast amounts of data for which it had not obtained the necessary licenses or permissions, and thus that the Company was at material risk of lawsuits from copyright holders These statements and omissions were made at a time when all Defendants knew or should have known that other AI developers had been sued by copyright holders for using datasets that included unlicensed materials, and that the datasets used by NVIDIA were not subjected to “principles [that] reflect our core values and our Code of Conduct,” and that Defendants did not “endeavor to deliver trustworthy AI models that comply with privacy and data protection laws [or] perform safely and as intended.” At best, the Director Defendants acted recklessly in making representations regarding NVIDIA’s practices given the copyright claims associated with The Pile, Books3, Anna’s Archive, RedPajama, LibGen, SciHub, Z-Library, and Panda- 70M, datasets comprised of YouTube videos, and human speech recordings.
The Director Defendants knowingly approved and/or permitted a business model to train NVIDIA’s AI products on a dataset that included copyrighted materials, YouTube videos, commercial voice models, and knew of the falsity of the misleading statements in SEC filings at the time they were made.
As explained above, the Individual Defendants caused NVIDIA to issue numerous false and misleading disclosures during the Relevant Period, misrepresenting that NVIDIA had not trained its AI with any copyrighted material and biometric information and concealing the extent to which NVIDIA had improperly used the copyrights and biometric information of other persons and companies.
AI & automationConfirmedAgainst
Jensen Huang demands AI automation wherever possible
CEO Jensen Huang demanded automation wherever AI can be applied after Nvidia's record earnings.
After Nvidia $NVDA’s recent record earnings, an internal all-hands meeting — part pep-talk and part culture intervention — reportedly turned sharp when CEO Jensen Huang responded to an employee question about managers telling people to use AI less by demanding automation anywhere the technology can reach.
Climate & energyConfirmedIn favor
Nvidia reached 100% renewable electricity for all offices and data centers under its control in fiscal 2025
The documented action involving Nvidia (NVDA) concerns offices and data centers.
Nvidia, the chipmaker at the center of the artificial intelligence boom, is partnering with glassmaker Corning for three new advanced manufacturing facilities in North Carolina and Texas dedicated entirely to optical technologies for the world's most valuable semiconductor company.