NVIDIA scrambles to respond to regulator probing over 90% share of AI chip market

NVIDIA is the company powering this global push into artificial intelligence-powered systems, tools, and software, as the Jensen Huang-led GPU maker currently creates the best hardware to train AI models.

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NVIDIA CEO and founder Jensen Huang

The value of NVIDIA's AI GPUs caused the company to skyrocket to the peak of the tech industry, briefly earning itself a staggering $3.3 trillion market valuation and becoming the most valuable publicly traded company in the world.

The valuation of NVIDIA has since corrected, but it's market dominance in the AI chip market has remained the same, which has caught the attention of numerous government regulators. Authorities with the European Union, Britain, and China have already asked for information on NVIDIA's sales of its AI chips, allocation of supplies, investments in other companies, and more.

Furthermore, the Justice Department has already launched an investigation into NVIDIA's sales practices and one of its most recent acquisitions - per three people familiar with the acquisition that spoke to the New York Times under anonymity. It was only a few days ago that US progressive groups, along with Democratic senator Elizabeth Warren pushed for the US Justice Department to investigate NVIDIA over competition concerns.

"Regulators need not be concerned, as we scrupulously adhere to all laws and ensure that NVIDIA is openly available in every cloud and on-prem for every enterprise,," said an NVIDIA spokesperson. "We'll continue to support aspiring innovators in every industry and market and are happy to provide any information regulators need."

To respond to all of this regulatory scrutiny, NVIDIA is currently building new offices and acquiring the necessary staff. It was last year that NVIDIA began searching for an office in Washington and hired four public policy employees. In 2024 the green team has hired a competition attorney that is working alongside NVIDIA's current legal team that is responding to any antitrust questions the company has been receiving.

Furthermore, the new report states NVIDIA is putting together a strategy to respond to any government regulatory interest over its dominance in markets, specifically the AI chip market where NVIDIA holds at least 80% market share.

In other NVIDIA news, a new explosive report from 404 Media has alleged that NVIDIA scraped millions of YouTube videos to train its AI models and that internally, employees were told to scrape videos from Netflix, YouTube, and other sources that prohibit data scraping. In response to these allegations NVIDIA said its datasets used to train AI models are in "full compliance" with copyright laws.