Nvidia faces U.S. Justice Department antitrust investigation after rivals complain – NBC Los Angeles

• The U.S. Department of Justice has opened an antitrust investigation against Nvidia to investigate complaints that the giant was abusing its dominant position in the market for artificial intelligence chips, The Information reported.
• The Justice Department contacted Nvidia competitors such as AMD to gather information about the complaints, according to a report released Thursday.
• Nvidia shares fell 3.5% in pre-market trading amid a global sell-off in semiconductor stocks.

The US Department of Justice is investigating complaints that Nvidia allegedly abused its dominant position in the market for artificial intelligence chips, The Information reported.

The Justice Department contacted Nvidia competitors such as AMD to gather information about the complaints, according to a report released Thursday.

According to the report, investigators are looking into whether Nvidia charges its customers higher prices for products if they want to buy AI chips from competitors such as AMD.

The Justice Department is also investigating whether Nvidia pressured customers to buy additional products, such as cables that connect servers together, The Information reported.

In response to the report, an Nvidia spokesperson said the company “wins on merit.”

“We compete by building on decades of investment and innovation, rigorously complying with all regulations, making NVIDIA solutions available in every cloud and on-premises for every enterprise, and ensuring that customers can choose the solution that is best for them,” the spokesperson said.

They added that Nvidia “willingly provide regulators with any information they require.”

Representatives from Nvidia and the Department of Justice were not initially available for comment when contacted by CNBC.

Nvidia shares fell 3.5% in pre-market trading amid a global sell-off in semiconductor stocks.

Read the full report here.