DOJ subpoenas NVIDIA in AI antitrust investigation

The Justice Department has issued subpoenas to NVIDIA and other companies as part of an antitrust investigation, The federal government is seeking evidence that the company violated antitrust laws with its AI processors. The presence of these subpoenas means the DOJ is one step closer to filing a formal complaint.

Officials speculate that NVIDIA is making it harder for other companies to switch hardware suppliers and that it is “punishing buyers who do not exclusively use its AI chips,” but that investigation has recently escalated to include legally binding requests for information.

At the heart of the DOJ investigation is NVIDIA, a company that makes software to manage AI computing tasks. Concerns have been raised that the purchase would make it harder for enterprise customers to switch away from NVIDIA chips because it would also require a software change.

But that’s not the only reason for the investigation. Regulators are also looking into whether NVIDIA provides preferential treatment to customers who use only its technology or buy its complete systems. This special treatment allegedly includes priority purchases of hardware and related materials, as well as unique pricing models.

NVIDIA provided a concise response, saying: Bloomberg that “it wins on merit, as reflected in our comparative results and the value to customers, who can choose the solution that is best for them.” The conclusion is that the company’s market dominance comes from hard work, not from flattering contracts.

The investigation is still in its early stages, as it has not yet developed into a formal complaint. The company got ahead of the Justice Department’s announcement, but that was likely due to . However, the stock has still more than doubled this year as the AI ​​boom continues to do its thing.