News Rival firm says Nvidia's AI customers are scared to be seen courting other AI chipmakers for fear of retaliatory shipment delays: Report

[Admin]

WSJ report surfaces rumors that Nvidia might be willing to add delays to GPU orders if it becomes aware of a customer looking for greener pastures.

Rival firm says Nvidia's AI customers are scared to be seen courting other AI chipmakers for fear of retaliatory shipment delays: Report : Read more

 

[peachpuff]

Fear of being found out is so strong that it isn’t uncommon for people to deny they have had meetings with rival AI accelerator chip firms, Jonathan Ross, CEO of rival chip startup Groq, told the WSJ.

Stay classy Jensen 🧐

 

[g-unit1111]

I feel like Jensen may be going mad with power here.

 

[MatheusNRei]

I feel like Jensen may be going mad with power here.

I think we're well past maybe by this point.

But then again, anti-competitive practices are nothing new to NVIDIA or most larger companies for that matter.

 

[Stevemeister]

There are things called anti-trust laws to stop this type of thing and running afoul of anti-trust laws can get very expensive

 

[MatheusNRei]

There are things called anti-trust laws to stop this type of thing and running afoul of anti-trust laws can get very expensive

The problem would be proving that this is indeed happening.

 

[atomicWAR]

Sadly I am anything but surprised. Jensen has been tightening his grip on the market while losing touch with reality all at the same time. I get Nvidia is an AI company but gamers made them. And we get rewarded with skyrocketing msrp prices (thanks pandemic for showing him the way), minimal performance gains in the low to mid range skus, crippled buses, low VRAM, etc etc. We need better competition in the AI and gaming markets, so of course Nvidia (cough Jensen cough cough) will do everything in their power to ensure that does not happen.

 

[digitalgriffin]

If true, this would fall under RICO racketering and Anti Trust laws in the USA

Racketerring includes Coercion

Coercion involves compelling a party to act in an involuntary manner by the use of threats, including threats to use force against that party.[1][2][need quotation to verify][3] It involves a set of forceful actions which violate the free will of an individual in order to induce a desired response. These actions may include extortion, blackmail, or even torture and sexual assault.

Remember when 3dfx was the evil company for suing nvidia? I'm begining to miss them.

 

[digitalgriffin]

The problem would be proving that this is indeed happening.

He better pray he doesn't have a disgruntled employee who has access to sales schedules. Anti Trust Whistle Blower protection laws was passed by congress in 2020. And RICO violations can have monetary rewards.

Antitrust Whistleblower Protection Law

Are whistleblowers protected against retaliation for disclosing antitrust violations? Collapse Yes, the Criminal Antitrust Anti-Retaliation Act, which was If you have suffered retaliation for reporting criminal antitrust violations, contact our experienced whistleblower protection lawyers at...

www.zuckermanlaw.com

 

[g-unit1111]

I think we're well past maybe by this point.

But then again, anti-competitive practices are nothing new to NVIDIA or most larger companies for that matter.

View: https://www.youtube.com/watch?v=zoZRdnHeeYg

 

[UnforcedERROR]

I feel like Jensen may be going mad with power here.

Leather jackets can do that to a man, and Jensen has more than a few.

If true, this would fall under RICO racketering and Anti Trust laws in the USA

Racketerring includes Coercion

Coercion involves compelling a party to act in an involuntary manner by the use of threats, including threats to use force against that party.[1][2][need quotation to verify][3] It involves a set of forceful actions which violate the free will of an individual in order to induce a desired response. These actions may include extortion, blackmail, or even torture and sexual assault.

Remember when 3dfx was the evil company for suing nvidia? I'm begining to miss them.

Would this be applicable if you know a company may be less responsive to you though? I would imagine threats indicate specific levels of communication, either direct or implied. This sounds like it wouldn't entirely fall under that definition, because it may not be said, it just happens.

I don't know enough about the legality there, and I don't want to assume.

 

[nightbird321]

It's fine, the shortage won't go away and Nvidia abusing their market position will only encourage the migration to competitors asap.

 

[JTWrenn]

Do I believe Nvidia could do this...sure. Do I see a solid incentive to do so given their current market conditions and the risk of pushing it...no. Has any of this been corroborated from any direct source...no.

I get that Nvidia is at the top and we expect them to be a-holes because well that is what companies do, but without corroboration do you really trust their competitors to be fair at all in this?

 

[Loadedaxe]

They are the leader, plain and simple and they can do whatever they want with their product. There is no anti trust going on here, it's called business.

I don't agree with it, I am just pointing this out as people keep screaming ant trust. Is it ethical...meh, It depends. But as long as everyone keeps feeding the dragon, the dragon is going to grow.

 

[vertuallinsanity]

There are things called anti-trust laws to stop this type of thing and running afoul of anti-trust laws can get very expensive

This! And it still works. Especially for large companies/corporations.

The problem would be proving that this is indeed happening.

Nvidia doesn't make them. They design them. TSMC currently builds them. Available parts could easily be established via warrant-provided info and/or cooperation from TSMC.
TSMC: "Yep, that batch of 1000 AI units was completed Q3/23 and shipped back to NVidia".


___

NVidia's turn to strong-arm the market? No. This kind of manufactured economy crap stopped happening last year ...

 

[scottslayer]

Do I believe Nvidia could do this...sure. Do I see a solid incentive to do so given their current market conditions and the risk of pushing it...no. Has any of this been corroborated from any direct source...no.

I get that Nvidia is at the top and we expect them to be a-holes because well that is what companies do, but without corroboration do you really trust their competitors to be fair at all in this?

I have no doubt it was delivered verbally, just like when the AIBs were thinking of making Intel GPUs and all of a sudden every one of them got contacted by an Nvidia rep.

 

[purpleduggy]

artificial scarcity. told you so

 

[umeng2002_2]

Fortunate timing that AI took off just as crypto crashed again. However, companies don't have infinite money, and when a lot of these AI companies start not seeing revenue, hardware orders will dry up. And by that time AMD will probably have caught up in ray tracing performance.

 

[yhhjvkj]

i will gladly report NVIDIA to the FTC for this anti trust behavior.

 

[brandonjclark]

How much do you guys have in NVIDIA stock? Even if you have a lazy portfolio and manage only index-based funds, they are almost the sole reason (along with M$) that your 401k is earning you a ton of capital.

Now, ask yourself, how much appetite do you think there is on the Hill to bring action against America's darling stock?

 

[tamalero]

I feel like Jensen may be going mad with power here.

there is a reason he was called "dear leader" for a long time.
to mimic his similar actions that are akin to North Korea's dictator.

 

[watzupken]

Nvidia is in a very strong position and clearly abusing their advantage. Given that it is not just companies that are relying on them for AI GPUs, but countries as well, hence, I sense little incentive at this point for regulators to disturb them. If you ask me, just like I said on another similar thread, this should come as no surprise to anyone. Just looking at the their dominance and practice with gaming GPUs, you should expect them to use strong underhand tactics to undermine competition. But then again, people choose to close their eyes to these tactics, so all the more they dare to do it openly. So where is consumer fairness and fair competition?

 

[bit_user]

artificial scarcity. told you so

That's not the allegation.

Nvidia is already making as many as they can. These added delays are painful, because everyone is facing some delay. What they're saying is that Nvidia is de-prioritizing customers who are approaching Nvidia's competitors.

 

[bit_user]

How much do you guys have in NVIDIA stock? Even if you have a lazy portfolio and manage only index-based funds, they are almost the sole reason (along with M$) that your 401k is earning you a ton of capital.

Now, ask yourself, how much appetite do you think there is on the Hill to bring action against America's darling stock?

This is too simplistic. If the FTC opens a case against Nvidia, those betting on AI will just shift some of their investments towards Intel, AMD, and others in that market.

The mere fact of a case being opened wouldn't have much effect on the stock price, either. I'm sure the export restructions to China had a bigger impact than a FTC case about this would.

Plus, these cases take years to play out. So, they're actually pretty hard to time for political advantage or damage-limitation.

 

[Notton]

And even if nvidia were found to have committed a crime, it's usually a slap-on-the-wrist in fines.
As an example, it'd be like $100 Million fine compared to their $61 Billion yearly revenue.
If you can't imagine those numbers, that's 0.16%.
I doubt that even scratches paint, more like a scuff mark that easily buffs out.