Former U.S. President Donald Trump previously considered breaking up NVIDIA to foster market competition, a proposal revealed during a speech in Washington, D.C. where NVIDIA CEO Jensen Huang was present. The address centered on an AI Action Plan introducing policy reforms potentially beneficial to the GPU manufacturer.
"I said, 'Look, we're going to break this guy up,' Trump recalled. 'That was before I understood the truth of the matter. I said, "We're going to break him up."'
The rationale for potential divestiture remained unspecified, though officials typically advocate corporate splits due to antitrust concerns. During President Biden's administration, the Department of Justice reportedly initiated an antitrust investigation against NVIDIA. Bloomberg sources indicated regulators expressed concerns about the chipmaker's sales practices, particularly whether NVIDIA linked access to its graphics cards with purchasing ancillary products or avoiding competitor hardware.
The DOJ's scrutiny also reportedly extended to NVIDIA's acquisition of startup Run:AI, which developed AI optimization software reducing GPU requirements. According to Politico reports, regulators feared NVIDIA's acquisition might "bury technology that could undermine its core profit engine." The deal proceeded after NVIDIA agreed to open-source Run:AI's software.
In his speech, Trump stated he reconsidered the plan after being informed of its complexity. "They said, 'No sir. It's difficult.' I asked, 'Why?' I inquired, 'What percentage of the market does he control?' They replied, '100%.' I asked, 'Who exactly is he? What's his name?' 'His name is Jensen Huang, NVIDIA.'" Trump explained the reconsideration process: "I thought we could go in, split him up a bit, give him some competition, but I discovered this isn't easy in the industry. I said, 'Suppose we gather the smartest people and work together for years.' He said, 'No, even if (Huang) ran NVIDIA completely ineptly from now on, it would take at least ten years to catch up.'
NVIDIA faces significant competition in the AI accelerator market, with rivals ranging from VC-backed startups to established chipmakers like AMD. The specific business segment targeted for potential division remains unclear.
The AI Action Plan, central to Trump's speech, proposes regulatory changes likely increasing demand for NVIDIA chips. It advocates streamlining approvals for new AI data centers and power infrastructure, while recommending federal agencies accelerate adoption of "computing environments to support scalable and secure AI workloads."
