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



