It appears that Nvidia, a leading manufacturer of graphics cards, is facing accusations of exerting control over product distribution in the data center sector.
This is based on statements from executives at Groq, a competitor of Nvidia, as well as a former manager at AMD.
During an interview with The Wall Street Journal, Jonathan Ross, the CEO of Groq, revealed that some data center customers who enter into deals with Nvidia are afraid of the mere idea of engaging with competing companies in the field of manufacturing chips for artificial intelligence.
They are concerned that Nvidia may punish them by delaying the delivery of the graphics processing units they have requested.
Scott Helman, former vice president and general manager at AMD Radeon, commented on these allegations regarding Platform X: “These events are more than anticipated, as Nvidia tends to engage in them with its data center customers, OEMs, distributors, and the press.
Nvidia learned from the mistakes it faced in the GeForce Partners program in 2018, where it abandoned written contracts.
Now, it does not ship its products to customers until it ensures that their actions align with the company’s interests. It resembles a gang controlling graphics processing units, managing the entire supply chain.”
The Nvidia GeForce Partners program in 2018 led to several issues for Nvidia, as it relinquished it due to intense criticism for the exceptional terms it demanded from partners. Helman notes that the company has continued these tactics but moved away from documented contracts.
A report published by The Wall Street Journal indicated that tech giants like Microsoft, Google, and Amazon are striving to develop their own AI processors, but they are unable to compete with Nvidia in this field.
Nvidia now holds around 80% of the global AI chip market, granting it significant authority and influence in the biotechnology sector.
Allegations by Groq suggest that Nvidia is willing to use its dominant position in the market to defend its prevailing influence.
Nvidia has not issued any official statements regarding the allegations against it. However, these reports have sparked further rumors about the possibility of its continued practice of monopolistic methods.
