Report says Nvidia faces antitrust investigation

NEW YORK — Antitrust tensions are rising in the chip industry, with rivals accusing Wall Street darling Nvidia of abusing its dominant market position in selling chips that power artificial intelligence — and the U.S. Department of Justice is investigating the complaints, technology news site The Information reported.

Justice Department officials are investigating concerns that Nvidia is potentially monopolizing the market and unfairly pressuring its customers to keep their business, according to the news agency, which cited anonymous sources familiar with the discussions. That includes allegations that Nvidia is threatening to punish those who buy products from both the Santa Clara, California-based tech giant and its competitors.

The release also said U.S. officials have contacted several of Nvidia’s competitors regarding the complaints.

The Justice Department declined to comment or provide further information when contacted by The Associated Press on Friday.

However, Nvidia’s statement said the company “wins on merit” and competes “based on decades of investment and innovation, while scrupulously complying with all laws.”

Without directly addressing the details of The Information’s Thursday report, the company added that it “willingly provides regulators with any information they require.”

Nvidia has faced calls for an antitrust investigation from some Democratic lawmakers and progressive groups before. This week, 10 progressive advocacy groups — including the Demand Progress Education Fund and the Tech Oversight Project — wrote a letter to Deputy Attorney General Jonathan Kanter supporting an antitrust investigation into the chipmaker.

“Nvidia is the world’s chip gatekeeper,” the groups wrote, arguing that the company “has fought its way into investment power” by exploiting limited supply and tactics like blocking customers from doing business with competitors. “A company like this deserves the most aggressive scrutiny the Justice Department can muster.”

Nvidia has cemented itself as the poster child of the AI ​​boom — and in the process, it has become one of the most valuable companies in the world. In June, the tech giant briefly had a market value of more than $3.3 trillion.

Some of that market momentum has since stalled — and any stock that reaches such highs is susceptible to some investors selling shares to secure profits. Nvidia shares were down 3% on Friday afternoon.