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Nvidia to invest up to $100B in OpenAI, fueling AI dominance — and antitrust worries

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Nvidia will invest up to $100 billion in OpenAI and supply it with advanced data center chips, the companies confirmed Monday, marking one of the largest-ever deals in artificial intelligence. The pact ties together the world’s leading AI chipmaker and the sector’s most high-profile model developer, deepening concerns about market concentration.

Deal structure

  • Nvidia will acquire non-voting shares in OpenAI.

  • OpenAI will use the cash to purchase Nvidia chips, creating what analysts called a “circular” arrangement.

  • The two companies signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems — equivalent to powering 8 million U.S. homes.

  • Nvidia will begin deliveries in late 2026 via its new Vera Rubin platform, starting with 1 GW of compute.

  • Initial investment: $10B, with further tranches scaling toward $100B.

OpenAI CEO Sam Altman said: “Compute infrastructure will be the basis for the economy of the future, and we will utilize what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.”

Market reaction

  • Nvidia shares hit a record intraday high (+4.4%).

  • Oracle gained 6% amid its own collaboration with OpenAI, Microsoft, and SoftBank on the $500B Stargate data center project.

  • Broadcom fell 0.8% on concerns the deal could complicate its custom-chip work with OpenAI.

Industry context

The pact follows:

  • Microsoft’s multibillion-dollar investments in OpenAI since 2019.

  • Nvidia’s $5B investment in Intel and its $6.6B backing of OpenAI in 2024.

  • Ongoing OpenAI efforts to design its own AI chips with Broadcom and TSMC, which reportedly remain unchanged.

Antitrust spotlight

The DOJ and FTC reached an agreement in 2024 enabling potential probes into the roles of Microsoft, Nvidia, and OpenAI in AI. Analysts warn this deal could intensify scrutiny:

  • Andre Barlow, antitrust lawyer: “It could potentially lock in Nvidia’s chip monopoly with OpenAI’s software lead, making it more difficult for rivals like AMD or competing AI labs to scale.”

  • Stacy Rasgon (Bernstein): The structure raises concerns about Nvidia’s investment dollars coming back as chip purchases.

The Trump administration has so far taken a lighter regulatory approach than Biden’s, emphasizing growth over enforcement — though officials say protecting competition in AI infrastructure remains a long-term priority.

Amazon faces FTC in trial over claims it tricked millions into Prime subscriptions

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The U.S. Federal Trade Commission (FTC) opened its case against Amazon on Tuesday, accusing the company of deliberately making it difficult for customers to avoid or cancel Prime subscriptions, prioritizing revenue growth over consumer choice.

FTC’s case:

FTC attorney Jonathan Cohen told jurors that Amazon knowingly enrolled millions of people in Prime without clear consent, using deceptive sign-up practices and “dark patterns” in its cancellation system. “More members, more money,” Cohen said, arguing Amazon refused to simplify processes because it feared sign-ups would fall.

The agency says Amazon’s practices violated the Restore Online Shoppers’ Confidence Act (ROSCA), pointing to the so-called “Iliad flow” — a cancellation process requiring up to seven clicks to end a membership, despite misleading prompts suggesting the process was already complete. An FTC expert estimated 40 million customers were signed up without consent.

Prime subscriptions cost $14.99 per month, covering free expedited shipping and access to streaming and other perks. For some households, Cohen noted, that monthly charge meant “grocery money, gas, or the last bit to make rent.”

Amazon’s defense:

Amazon attorney Moez Kaba rejected the FTC’s claims, insisting the company clearly disclosed terms and made canceling straightforward. He accused regulators of cherry-picking evidence and misinterpreting internal documents. Kaba argued ROSCA’s requirements remain vague and compliance “shouldn’t feel like Goldilocks” guessing the right level of disclosure.

Broader crackdown:

The trial is part of a bipartisan push against “subscription traps” and hidden fees. The FTC also sued Uber and LA Fitness this year over similar cancellation hurdles. The case began during Trump’s presidency and advanced under Biden, showing rare regulatory continuity across administrations.

Stakes:

  • Damages: Potentially hundreds of millions of dollars plus fines of up to $53,000 per violation.

  • Reputation: A conviction could tarnish Amazon’s customer-first image.

  • Executives: Three senior executives, including Jamil Ghani, face personal liability after a judge ruled they could be held accountable for violations.

The trial is expected to last about a month, with testimony from customers and current and former Amazon staff. The outcome could set a precedent for how aggressively regulators can police dark patterns and subscription practices across the digital economy.

Nvidia’s $100B OpenAI deal sparks antitrust scrutiny over AI dominance

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Nvidia’s plan to invest up to $100 billion in OpenAI — while supplying the ChatGPT maker with millions of AI chips — is raising alarms among antitrust experts who warn the partnership could distort competition in a market already dominated by a handful of tech giants.

Nvidia controls more than half of the GPU market, the essential chips powering AI data centers. Experts caution that a financial tie to OpenAI could give Nvidia incentives to favor one customer over rivals through preferential pricing or faster delivery. “They’re financially interested in each other’s success. That creates an incentive for Nvidia to not sell chips to, or not sell chips on the same terms to, other competitors of OpenAI,” said Rebecca Haw Allensworth, a Vanderbilt Law School antitrust professor.

Andre Barlow, an antitrust lawyer, said the deal raises “significant antitrust concerns,” though the Trump administration’s pro-business stance complicates the outlook. President Donald Trump has emphasized both removing regulatory hurdles to accelerate AI growth and using antitrust enforcement to ensure long-term competition.

The scale of the deal highlights how expensive frontier AI has become. “The cost of chips, data centers and power has pushed the industry toward a handful of firms able to finance projects on that scale,” said Sarah Kreps, director of the Tech Policy Institute at Cornell University. Nvidia’s top two customers already account for nearly 40% of its revenue, underscoring its reliance on concentrated buyers.

Under President Biden, regulators had warned Big Tech could use scale to dominate AI. The DOJ and FTC pursued early inquiries into exclusionary conduct around AI resources. The Trump administration has kept many Big Tech cases alive, with DOJ antitrust head Gail Slater saying last week enforcement must focus on preventing bottlenecks: “The competitive dynamics of each layer of the AI stack and how they interrelate… are legitimate areas for antitrust inquiry.”

For now, Nvidia insists its investment won’t alter its sales practices: “We will continue to make every customer a top priority, with or without any equity stake,” a spokesperson said. OpenAI declined to comment.