Nvidia CEO Jensen Huang's net worth fell by nearly $10 billion on Tuesday as the AI chip leader's shares plunged. fell nearly 10% amid a global sell-off.
Huang, 61-year-old Taiwanese-born executive The man who cleaned bathrooms and worked as a busboy at Denny's before co-founding Nvidia 30 years ago saw his wealth drop to $94.9 billion. According to the Bloomberg Billionaires Index.
His wealth, which had surged to $51 billion this year, declined after Nvidia posted the biggest one-day loss in history, slashing its market capitalization by about $280 billion.
As of Tuesday, Nvidia's market capitalization was $2.6 trillion, trailing Apple ($3.35 trillion) and Microsoft ($3.02 trillion).
Nvidia's stock fell Bloomberg News reported that the Justice Department issued summons to the company as part of its ongoing investigation in alleged anti-trust violations.
The Santa Clara, California-based company is notorious for its demanding workplace culture, where employees work over 15 days a week. seven days a week and sometimes until 1 or 2 a.m.The company is alleged to have pressured its customers and penalized them if they did not purchase its chips exclusively.
The investigation is looking at whether Nvidia charges its customers more for networking equipment if they want to buy AI chips from rivals such as Advanced Micro Devices (AMD) and Intel.
Intel's The stock fell nearly 9% after Reuters reported CEO Pat Gelsinger And key executives are expected to present a plan to the company's board of directors to eliminate unnecessary businesses and improve capital spending at the struggling chipmaker.
According to Reuters, the Justice Department is taking a leading role in the investigation of Nvidia, as the agency is splitting Big Tech probes with the Federal Trade Commission.
The FTC is headed by Lina Khan, whose aggressive crackdown on big business has led many industry giants, including media mogul Barry Diller and technology billionaire Reid Hoffman, to demand that she be removed from the post if Vice President Kamala Harris wins the White House in 2024.
Nvidia, whose chips are used for both artificial intelligence and computer graphics, has seen a surge in demand for its products following the release of generative AI application ChatGPT.
But the company's business practices have prompted regulators in the US as well as Europe to investigate alleged monopolistic behaviour.
The European Union, France and China have asked Nvidia for information about its graphics cards.
Government regulators have become concerned with Nvidia's market dominance, which is based on the companies' reliance on its CUDA chip programming software – the only system that is 100% compatible with the graphics processing units (GPUs) that power gaming, content creation, AI and scientific research.
The Post has sought comment from Nvidia.
with post wire
