Nvidia faces greater DOJ scrutiny

Remember back in April, when Nvidia reportedly spent $700 million to acquire Run:ai, the Israeli startup specializing in GPU management software. That acquisition meant that they would have the monopoly and control over 75% of the chip market! Soooo, this comes as no surprise that Nvidia is facing antitrust and monopoly scrutiny. Why this was allowed to happen in the first place makes me scratch my head....#nvidia #monopoly

Picks and Shovels problem… An issue has been identified in the GB200 superchips, specifically in the chip responsible for linking two B200 units and connecting them to the Grace CPU. The problem stems from a high number of manufacturing defects. To meet the immense demand, the chip will need to be redesigned. If all goes well, the release of the Blackwell GPUs will be pushed back by three months. This delay will significantly impact the deployment of several major clusters. Microsoft had planned to provide OpenAI with access to over 50,000 next-generation GPUs by early 2025. Google also ordered 400,000 GPUs for its cloud infrastructure, and other tech giants have placed orders worth over $10 billion. As a result, the next generation of models, which rely on these new clusters for training, will also be delayed by several months. https://lnkd.in/gxFZ56fh

The Information just broke news about NVIDIA’s next generation #AIChip being delayed by about one business quarter, or more. While this is obviously not good news for NVIDIA it has the potential of impacting Microsoft, Meta, and Google too. It will be interesting to see how the investors for all four companies react next week when markets open. On the one hand these companies will now have tens of billions of dollars of orders pushed out that will help their balance sheets in the near term… the bigger question is if this pause and more evidence of #AI success and or #failure impacts these orders. In short will they keep the orders in place if customers slow their spending for #GenAI based products, or as expected, NVIDIA customers keep pushing the company to produce more faster. What do you think? #management #venturecapital #privateequity #capitalmarkets #AIFunding

Friday scoop: Nvidia's upcoming AI chips will be delayed by three months or more due to design flaws, a snafu that could affect customers such as Meta Platforms, Google and Microsoft that have collectively ordered tens of billions of dollars worth of the chips. Nvidia this week told Microsoft, one of its biggest customers, and another large cloud provider about a delay involving the most advanced AI chip in its new Blackwell series of chips. The Information More here: https://lnkd.in/gtzRzRQH

NEWS: Nvidia is now facing two investigations from the US Department of Justice over its AI practices, according to new reports published Thursday night. One of the investigations is examining whether Nvidia might have violated any US antitrust laws with its?$700 million?April acquisition of Israeli AI startup Run:AI, Politico?reports, citing five unnamed sources familiar with the probe. The second DOJ investigation is looking into Nvidia's status as a dominating force in the chips market in response to complaints from competitors, The Information?reports. This is also an antitrust investigation, but will additionally determine whether Nvidia unfairly pressured cloud computing firms and will look into whether Nvidia overcharged customers for its hardware if they opted for a rival's chips. Full story: https://lnkd.in/eBZHu8hr

?? Nvidia under DOJ Investigation! ?? The Department of Justice has launched an antitrust probe into Nvidia, following complaints from competitors. This move signals growing regulatory scrutiny in the tech industry. Concerns include Nvidia’s potentially monopolistic practices and their impact on fair competition. An investigation like this could lead to significant changes in industry dynamics, promoting better competition and innovation. How do you think this will affect the tech landscape? ?? Link to Article https://lnkd.in/eZtJekVk #Nvidia #TechRegulation #Antitrust #DOJ #Innovation #TechNews #Competition #Monopoly #FairMarket #Technology #Justice #IndustryDynamics #BusinessNews #EthicsInTech

The DOJ is working overtime, now that it is probing into Nvidia's possible acquisition of Run: AI. One must wonder what took them so long to consider this probe, it's been on the news for about 3 months now. Run: AI's technology could alter, augment and enhance the use of GPUs for training models for the quick adoption and use of AI in businesses, and whether or not Nvidia is a monopoly matters very little: it is a monopoly and always has been. This seems more like whistleblowers saying that if the DOJ has been probing into their business lately, they should do the same to Nvidia. #nvidia #runai #doj

Bring the hammer down on Nvidia; US antitrust organisations ask DoJ. There have been reports that France is considering an examination. Unsurprisingly, Nvidia disagrees with the letter's allegations of monopoly abuse. https://zurl.co/56fS