Skip to main content

Nvidia's $100 billion OpenAI play raises big antitrust issues

  • Deal size: Nvidia plans to invest up to $100 billion in OpenAI, while OpenAI will buy millions of Nvidia chips.
  • Market dominance & bias risk: Nvidia controls over half of the GPU market for AI data centers; experts warn the partnership could favor OpenAI with better prices or supply.
  • Antitrust concerns: Legal and academic experts say the deal “raises significant antitrust concerns,” potentially squeezing out rivals.
  • Government stance: The Trump administration promotes AI growth by easing regulations but also pledges antitrust enforcement to protect competition.
  • Industry concentration: Rising costs for chips, data centers and power push frontier AI toward a small group of big players.
  • Customer concentration: Nvidia’s top two customers already account for 23% and 16% of its revenue, showing a highly concentrated base.
  • Company responses: Nvidia says the investment won’t change its equal-treatment policy for customers; OpenAI hasn’t commented.
  • Enforcement focus: The DOJ and FTC are watching AI’s supply chains and distribution channels for exclusionary behavior that blocks access to key inputs.
From

Comments