NVIDIA Accused of Acting as "GPU Cartel" and Controlling Supply

World's most important fuel of the AI frenzy, NVIDIA, is facing accusations of acting as a "GPU cartel" and controlling supply in the data center market, according to statements made by executives at rival chipmaker Groq and former AMD executive Scott Herkelman. In an interview with the Wall Street Journal, Groq CEO Jonathan Ross alleged that some of NVIDIA's data center customers are afraid to even meet with rival AI chipmakers out of fear that NVIDIA will retaliate by delaying shipments of already ordered GPUs. This is despite NVIDIA's claims that it is trying to allocate supply fairly during global shortages. "This happens more than you expect, NVIDIA does this with DC customers, OEMs, AIBs, press, and resellers. They learned from GPP to not put it into writing. They just don't ship after a customer has ordered. They are the GPU cartel, and they control all supply," said former Senior Vice President and General Manager at AMD Radeon, Scott Herkelman, in response to the accusations on X/Twitter.






The comments reference the NVIDIA GeForce Partner Program (GPP) from 2018, which was abandoned following backlash over its exclusivity requirements. Herkelman suggests NVIDIA has continued similar practices but avoided written agreements. The Wall Street Journal report also hinted that major tech companies like Microsoft, Google, and Amazon are developing their own AI accelerators but downplaying them as NVIDIA competitors. This further points to an environment where NVIDIA is seen as controlling access to key technology for AI development. NVIDIA currently powers around 80% of AI development worldwide, giving it incredible influence over strategic technology. The accusations from Groq and Herkelman suggest the company is willing to leverage that market position aggressively to protect its dominance. NVIDIA has not officially responded to the latest accusations. But the reports have fueled speculation about anticompetitive practices just as regulatory scrutiny grows over the market power of tech giants. NVIDIA will likely face pressure to transparently address whether its supply allocation favors some customers over others based on relationships with rival chipmakers.

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