Michael Burry claimed Nvidia intervened to prevent AMD from securing a major AI infrastructure contract with Oracle tied to OpenAI’s data-center project, allegedly paying $150 million to influence the outcome. He described this conduct as "mafia-like" market behavior. Burry argued that Oracle’s planned facility centered on Nvidia’s upcoming Blackwell chips but that OpenAI withdrew, citing concerns over chip obsolescence.

Burry stated the Justice Department has been investigating Nvidia for nearly two years for potential anticompetitive practices in the AI chip market. No formal confirmation has been made public by either Nvidia or the Department of Justice. The duration of the probe suggests regulators are scrutinizing Nvidia’s distribution agreements and market conduct.

Nvidia controls the largest share of the global AI accelerator market, with its GPUs powering major AI systems for OpenAI, Meta and cloud providers. Competitors like AMD and Intel have struggled to match Nvidia’s performance lead and ecosystem integration. This dominance underpins Nvidia’s gross margins above 75% and its market valuation in the trillions.

Antitrust action could force Nvidia to revise distribution practices and alter future deal structures, potentially affecting revenue growth and customer relationships. Investors may reassess risk premiums if regulatory hurdles escalate, while competitors could gain a foothold if restrictions limit Nvidia’s market power. The emergence of these allegations has already sparked debate about the balance between technological innovation and market competition.