Groups Call for Antitrust Cases Against Nvidia by State AGs

A group of organizations focused on corporate power recently sent a letter to state attorneys general urging them to take action against Nvidia, a giant in the chipmaking industry. Nvidia is currently under federal investigation for anti-competitive practices, and these groups believe that state attorneys general should join in on the effort.

The letter addressed to the National Association of Attorneys General (NAAG) highlights concerns about Nvidia’s alleged anti-competitive behavior, which they claim harm smaller players in the market and limit consumer choices. By initiating antitrust enforcement actions at the state level, these groups believe that the impact on state economies and startups can be minimized.

According to the organizations, state AGs can play a crucial role in holding companies like Nvidia accountable for their actions. By complementing federal investigations with state-level scrutiny, a more comprehensive approach to addressing anti-competitive practices can be achieved. This can ultimately benefit businesses, consumers, and the overall market for artificial intelligence (A.I.) chips.

Nvidia’s dominance in the chip market, with 88% share in GPU chips and 98% share in data-center chips for A.I. projects, has caught the attention of regulators. The U.S. Department of Justice and China have launched separate antitrust investigations into Nvidia, looking into allegations of preferential treatment, supply chain issues, and past acquisitions.

The organizations behind the letter believe that state-level lawsuits can provide more tailored solutions to address the specific harms faced by local communities. With a new administration taking over, lawmakers are pushing for continued focus on Nvidia’s practices to prevent anti-competitive behavior that could stifle innovation and harm consumers.

In conclusion, the call for state attorneys general to take action against Nvidia comes at a time when the company’s position in the market is under scrutiny. By working together at both the federal and state levels, regulators hope to ensure a fair and competitive landscape for the future of A.I. technology.