Nvidia faces subpoena from US Justice Department amid growing antitrust concerns

The U.S. Department of Justice (DoJ) has issued a subpoena to Nvidia, intensifying its antitrust investigation into the AI ​​chip maker, according to Bloomberg News. The move follows earlier investigations in which the DoJ sent questionnaires and now escalates to legally binding demands. The investigation extends beyond Nvidia, with other companies also reportedly receiving subpoenas.

Officials are investigating Nvidia’s practices, fearing the company may be restricting competition by making it harder for customers to switch to other vendors. There are also allegations that Nvidia is penalizing customers who don’t exclusively use its AI chips. An Nvidia spokesman defended the company, saying it competes on merit, emphasizing its performance in benchmarks and the value it provides to customers.

The subpoena continues the ongoing regulatory scrutiny of Nvidia, which has been the subject of investigations by authorities not only in the United States but also in South Korea, the European Union, the United Kingdom and China. Last month, it was reported that the Justice Department had opened a formal investigation into Nvidia after complaints from competitors about potential abuses of its dominant market position.

The timing of this legal scrutiny is sensitive, as investor enthusiasm for AI companies has waned amid concerns about slow financial returns from significant AI investments. Nvidia’s latest quarterly guidance fell short of investor expectations, further dampening optimism around AI. That prompted a significant market reaction, with Nvidia shares falling 1.5% in extended trading and 9.5% in regular trading, a record loss of $279 billion in market capitalization in a single day. Despite these setbacks, Nvidia shares have gained 141% this year, buoyed by high expectations for AI advances.

Featured image courtesy of Search Engine Journal

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