Nvidia has been subpoenaed by the Department of Justice. part of its ongoing investigation into potential antitrust violations by a Silicon Valley chipmaker Artificial intelligence dominates the market,
The antitrust watchdog has previously sent out questionnaires, and now it has sent a legally binding request to Nvidia. According to Bloomberg News.
Other companies have also received summons, the report said.
Nvidia declined to comment on the report, but said it would provide any information required by regulators.
“We compete based on decades of investment and innovation, diligently comply with all laws, make Nvidia openly available to every enterprise, in every cloud and on-premises, and ensure customers can choose the best solution for them,” an Nvidia spokesperson told Reuters.
Nvidia lost $279 billion in market capitalization on Tuesday as the company's stock fell nearly 10% as investors flocked to the market. Their optimism about AI waned amid a global sell-off on Tuesday,
Jensen Huang, the CEO of a company that has developed a workplace culture where employees stay in the office late into the night. Maximum 7 days a weekHis net worth decreased by $10 billion, as assessed by the Bloomberg Billionaires Index It stood at $94.9 billion as of the stock market close on Tuesday.
The Justice Department did not immediately respond to a Reuters request for comment on Thursday.
Last month, The Information reported that Justice Department investigators were looking into complaints that Nvidia allegedly abused its market dominance in selling chips that power artificial intelligence technology.
Nvidia is accused of pressuring cloud providers to buy a number of its products, while charging its customers more for networking gear if they bought AI chips from rivals including Advanced Micro Devices and Intel.
Nvidia controls about 80% of the AI chip market.
US lawmakers, including Senator Elizabeth Warren (D-Massachusetts), have pressured the DOJ to investigate Nvidia, as they worry it is violating antitrust law.
The world's largest maker of chips used for both artificial intelligence and computer graphics has seen a surge in demand for its chips following the release of generative AI application ChatGPT, triggering regulatory scrutiny on both sides of the Atlantic.
Earlier this summer, French authorities accused Nvidia of anti-competitive behavior.
In 2022, Nvidia announced it would abandon plans to acquire semiconductor giant ARM for $40 billion after the Federal Trade Commission filed a lawsuit to stop it.
The FTC, under its current chair Lina Khan, has been particularly aggressive in cracking down on alleged antitrust violations by big technology companies — drawing the ire of Silicon Valley heavyweights and business leaders, including LinkedIn co-founder Reid Hoffman and IAC chief Barry Diller.
In July, Hoffman publicly urged the Democratic candidateVice President Kamala Harris, If she wins the 2024 presidential election, she will remove Khan in November.
Jonathan Kanter is a top Justice Department official who heads its antitrust division. This has angered business leaders too He was sued for his efforts to curb corporate power by filing lawsuits against companies such as Google and Apple.
