The US Department of Justice has issued a subpoena to Nvidia Corporation, indicating an escalation in its antitrust investigation into the company. This legal request requires Nvidia, a major player in artificial intelligence computing, to provide information as officials look for evidence of possible violations of competition law. Nvidia, which briefly became the world’s most valuable public company in June, has increased its market share in the GPU sector to 88% in the first quarter of this year. This growth has raised alarms among antitrust officials, who are investigating whether Nvidia is making it difficult for customers to switch to other chip manufacturers or penalizing those who don’t exclusively use its products.
The subpoena arrives during a tough week for Nvidia’s stock, which dropped 9.5% to $108 on Tuesday, following reports about AI cooling, and fell further to $105.6 in after-hours trading. Despite these challenges, Nvidia’s stock has risen 124% since the beginning of the year, highlighting the company’s significant role in the AI chip market. Founded in 1993 and based in Santa Clara, California, Nvidia has established itself as a leader in producing chips that power generative AI, supplying advanced technology to over 40,000 companies across various industries, including automotive, pharmaceuticals, weather forecasting, and social media.
Nvidia has not commented on the subpoena but has previously maintained that it competes based on years of investment and innovation, asserting compliance with all laws in response to competition concerns. The Justice Department’s investigation reflects a growing regulatory focus on the influence of tech giants in the market. As AI technology continues to advance and impact multiple sectors, maintaining a balance between innovation and fair competition remains a key issue for both regulators and market participants.
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