Nvidia has defended its tactics in the hot market for chips to power artificial intelligence in the face of reports the U.S. is probing whether it abused its clout.
"Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them," a spokesperson for the Silicon Valley-based chip maker said in response to an AFP inquiry.
While chip buyers do have options, Nvidia is considered the technology leader when it comes to AI chips even though rivals are working hard to compete.
U.S. antitrust officials are stepping up their look into whether Nvidia made it tough for customers to change to competitors' GPUs or other chips to power AI, according to a report by Bloomberg and other media.
Legally binding questions have reportedly been sent to Nvidia and other chip companies as part of the U.S. probe.
The U.S. Department of Justice did not immediately respond to a request for comment.
The world's biggest tech companies have invested tens of billions of dollars into Nvidia's powerful AI chips and software in order to get their ChatGPT-style AI models up and running.
Microsoft, Google, Meta, Tesla and Amazon all depend on Nvidia technology to train generative AI models and execute the heavy computing workloads needed to deploy the new technology.
Nvidia last week said quarterly sales reached a higher than expected $30 billion in the last quarter, though that impressive growth was slower than the furious pace seen in previous quarters.
Nvidia share price fell a sharp eight percent on Monday, as doubts emerged about the AI boom's resilience in a slowing U.S. economy.
© 2024 AFP
5 Comments
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DanteKH
No, it most definitely doesn't!
It holds a crase monopoly due to proprietary patented technologies, including CUDA, Tensor, etc
Sh1mon M4sada
Cuda is the only library available to AI developers [period], no point buying AMD or Google Tensor, they don't have the tools like CUDA.
So essentially, nVidia does have a monopoly on AI training hardware. The question is, is it exploiting this market power...62% net margin is not bad ....
Torelol
No corporation in the World plays fair. One of its primary objectives is to destroy the competition!
Sven Asai
Nothing to fear here, for the rivaling chipmakers. It is only a lucky and temporary monopole position. They will of course rise or sink together with AI's success, namely some useful applications, put in and ripe for practical use, which make at least a little sense, bring any benefits to the customers and profits in return of the already gigantic pre-investments. But such cannot and recommended shouldn't be expected, that's just from the beginning and also intrinsically not possible. So that means the only one possible outcome is, that twinkling chip star will just sink together with the bursting bubble and broken hype.
Data
Who wrote that gobbledygook? Can't be an AI, their English is better.