Nvidia faces escalating antitrust scrutiny in AI chip market

The antitrust investigation into Nvidia's AI chip business by the Department of Justice is intensifying, with the company and others receiving subpoenas for information. Regulators are examining whether Nvidia's practices are creating barriers for customers looking to switch to alternative suppliers. Allegations suggest that Nvidia may be penalizing buyers who do not exclusively use its AI chips, raising concerns about its market dominance in the rapidly growing AI sector. Nvidia has publicly stated that it has not been subpoenaed and maintains that its success is based on merit, as evidenced by benchmark results and customer satisfaction. The company emphasizes that customers have the freedom to choose the best solutions for their needs. Despite the ongoing investigation, Nvidia is open to cooperating with regulators and addressing any inquiries regarding its business practices. The news of the investigation has had a significant impact on Nvidia's stock, which dropped over 9% in a single day, resulting in a loss of approximately $279 billion in market value. This decline comes after Nvidia had briefly surpassed Microsoft as the world's most valuable company earlier in the summer. However, the company's stock remains more than double its value from the beginning of the year, driven by the booming demand for AI technology and its high-performance chips. In light of the investigation and market fluctuations, Nvidia's future remains uncertain. The company is also facing potential delays in the release of its upcoming Blackwell series of AI chips, which could further affect its market position and investor confidence.