Nvidia, the leading player in artificial intelligence (AI) chip technology, is facing increased scrutiny from the U.S. Department of Justice (DOJ), which has deepened its antitrust investigation into the company. Bloomberg News reported that the DOJ has issued a subpoena to Nvidia as part of its probe, building on earlier questionnaires sent to the company. The investigation is also targeting other firms, with subpoenas sent to companies in relation to Nvidia’s business practices.
At the heart of the investigation are concerns that Nvidia may be using its dominant position in the AI chip market to make it difficult for buyers to switch to other suppliers. Additionally, there are allegations that Nvidia is penalizing customers who do not exclusively use its AI chips, further limiting competition in the fast-growing AI industry.
In response to the allegations, a spokesperson for Nvidia defended the company’s practices, stating, “Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them.”
The DOJ’s investigation comes amid growing scrutiny of AI-related businesses. Nvidia’s dominance in the AI chip market has drawn the attention of regulators, with officials in the U.S., South Korea, the European Union, the United Kingdom, and China all seeking information regarding the company’s investments, partnerships, and agreements. Last month, reports surfaced that the DOJ had initiated an investigation into Nvidia after receiving complaints from competitors alleging the company had abused its market power.
The timing of the DOJ’s intensified probe could pose additional challenges for Nvidia, as investor sentiment around AI technology has recently shifted. The company’s latest quarterly forecast did not meet investors’ high expectations, further dampening the optimism that had fueled a major rally in Nvidia’s stock earlier this year.
On the day the subpoena news broke, Nvidia’s shares took a hit, falling 1.5% in extended trading and dropping 9.5% during the regular session. This resulted in a staggering $279 billion loss in market capitalization—the largest single-day loss for any company. However, despite the recent setbacks, Nvidia’s stock remains up by 141% for the year, buoyed by strong investor enthusiasm for the company’s leading role in the AI sector.
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