Nvidia faces antitrust probe as Justice Department issues subpoena
- The U.S. Justice Department is investigating Nvidia for potential antitrust violations related to its dominant position in the AI chip market.
- The investigation examines whether Nvidia penalizes customers who do not exclusively use its chips or complicates their ability to switch to other suppliers.
- Nvidia has denied receiving a subpoena but expressed willingness to cooperate with regulators, reflecting the growing scrutiny of major tech firms.
The U.S. Department of Justice has escalated its investigation into Nvidia Corp. by sending subpoenas to the company and others, seeking evidence of potential antitrust violations. This investigation focuses on Nvidia's dominant position in the AI chip market, where it holds over 80% of the data center AI chip market share. Reports indicate that the DOJ is examining whether Nvidia has engaged in practices that penalize customers who do not exclusively use its chips or make it difficult for them to switch to competitors. Nvidia has publicly denied receiving a subpoena, stating it is willing to cooperate with regulators. The investigation is part of a broader scrutiny of major tech firms, including Microsoft, amid concerns about monopolistic behavior in the rapidly growing AI sector. Nvidia's stock has been affected by these developments, experiencing significant declines in market value as investor confidence wanes due to the ongoing regulatory scrutiny.