Nvidia is the largest AI company in the world, being able to go toe-to-toe with the likes of Microsoft and Apple in terms of market value. Its fortunes have varied since becoming a $2 trillion company not too long ago. Well, its fortunes might fluctuate even more, as Nvidia is now the subject of a large antitrust lawsuit.
You know what they say, “The bigger you are, the easier it is to get sued by regulators.” That’s how the saying goes for corporations, anyway. We’re all still feeling the aftershocks of the massive antitrust lawsuit that Google just lost. However, we’re not going to see the results of that case for months if not more than a year.
Nvidia is mixed up in an antitrust lawsuit
Nvidia is a major GPU company, and it makes some extremely powerful chips. Many of the top AI brands have been buying boatloads of its GPUs to train their AI models. These companies include OpenAI, xAI, Amazon, and many more.
While the company makes great chips, it looks like that’s not all that’s keeping companies coming back. According to a report, Nvidia is under the eye of regulators for possible antitrust practices. Sources say that Nvidia is “making it harder to switch to other suppliers and penalizes buyers that don’t exclusively use its artificial intelligence chips.”
This hasn’t been confirmed, but it seems like the kind of predatory thing that a large business would do to keep companies tied to its product. We’ll need to wait for further information to say for sure.
If Nvidia is found guilty of antitrust practices, it might be forced to make some changes. That would be bad for the company, but it will be good for competition in the market. Other chipmakers will be able to land contracts with AI companies and have a shot at profiting from AI. This is a developing case, so we’ll have to wait for more details.
2024-09-05 15:12:35