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Elizabeth Warren Supports DOJ Antitrust Probe Into Nvidia

By  |  September 8, 2024

Senator Elizabeth Warren has expressed strong support for the Department of Justice’s (DOJ) antitrust investigation into Nvidia, as the federal agency ramps up its scrutiny of the tech company. According to Business Insider, the Massachusetts senator, known for her advocacy of competitive markets, particularly in the financial sector, sent a letter on Thursday to Assistant Attorney General Jonathan Kanter to back the DOJ’s efforts. The letter followed reports that the agency had recently sent legal requests to Nvidia and other related firms. However, Nvidia denied being subpoenaed.

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    In her letter, Warren raised concerns about Nvidia’s increasing influence in artificial intelligence (AI) development, stating that it could lead to significant economic consequences. “Allowing a single company so much influence over AI research, development, and monetization poses dire economic risks,” she wrote, as per Business Insider, emphasizing the potential dangers of the company’s dominance in the sector.

    Nvidia, in response, defended its business practices. In a statement on Friday, a company spokesperson highlighted Nvidia’s longstanding commitment to innovation. “NVIDIA wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” the spokesperson stated. “We compete based on decades of investment and innovation, designing GPU, CPU, networking, and software for accelerated computing and AI, scrupulously adhering to all laws.”

    Read more: Nvidia and Microsoft Sued for Allegedly Undercutting AI Technology Patent Prices

    The probe into Nvidia’s practices has been ongoing for some time, with Bloomberg News reporting earlier this week that the DOJ had issued a civil investigative demand to the tech company as part of its antitrust investigation, which reportedly began earlier this year. The company, a leader in semiconductor manufacturing, has experienced unprecedented growth as demand for AI technology has surged.

    Warren’s letter, exclusively obtained by Business Insider, urged U.S. regulators to take decisive action, warning that Nvidia’s market dominance could stifle competition in the semiconductor industry. “The insatiable hunger of gargantuan Big Tech companies for Nvidia chips, along with the company’s opaque and preferential allocation of them, are starving startup companies of the infrastructure they need to do business and crowding academic AI researchers out of the field,” she wrote.

    Nvidia, based in Santa Clara, California, has seen its market share and influence soar in recent years, thanks to the growing reliance of major technology firms on its chips to power AI research and applications. According to Warren, this trend threatens to further entrench the company’s dominance, making it difficult for smaller firms and academic institutions to compete in the increasingly critical field of AI.

    Source: Business Insider