The US Justice Department sent subpoenas to
The DOJ, which had previously delivered questionnaires to companies, is now sending legally binding requests that oblige recipients to provide information, according to people familiar with the investigation. That takes the government a step closer to launching a formal complaint.
Antitrust officials are concerned that Nvidia is making it harder to switch to other suppliers and penalizes buyers that don’t exclusively use its artificial intelligence chips, according to the people, who asked not to be identified because the discussions are private.
Nvidia shares, which suffered a record-setting $279 billion rout on Tuesday, fell further in late trading after Bloomberg reported on the subpoenas. Still, the stock has more than doubled this year — fueled by explosive sales growth at the Santa Clara, California-based chipmaker.
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As part of the probe, which
In response to questions about the probe, Nvidia said that its market dominance stems from the quality of its products, which deliver faster performance.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” the company said in an emailed statement.
Nvidia has drawn regulatory scrutiny since becoming the world’s most valuable chipmaker and a key beneficiary of the AI spending boom. Sales have been more than doubling each quarter, and it’s eclipsed onetime chip leaders such as
In the DOJ probe, regulators have been investigating Nvidia’s acquisition of
WATCH: Ian King reports on the US Justice Department sending subpoenas to Nvidia and other companies as it seeks evidence that the chipmaker violated antitrust laws. Source: Bloomberg
Nvidia, founded in 1993, made its name by selling graphics cards to computer gamers. But its approach to chipmaking ultimately proved useful for building AI models, a process that involves bombarding the software with data. The company also has rapidly expanded its lineup with a range of software, servers, networking and services — all aimed, Nvidia argues, at speeding up the deployment of AI.
Nvidia Chief Executive Officer
The success of its products — along with struggles by
WATCH: How Nvidia Changed the Game Source: Bloomberg
Analysts
There also are broader regulatory questions about Nvidia’s practices. Access to AI capabilities has become a key focus for governments around the world, with the technology becoming increasingly vital to economic strength and national security.
(Updates with Nvidia response starting in sixth paragraph. An earlier version of the story corrected the day of the week.)
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