US Department of Justice ramps up probe into Nvidia’s AI practices
Nvidia has been issued a subpoena as part of an escalating antitrust investigation, with officials concerned that the company is making it difficult for customers to switch suppliers.
The US Department of Justice has intensified its antitrust investigation into Nvidia by issuing a subpoena, according to reports from Bloomberg. The subpoena comes after previous questionnaires were sent, signalling the authorities’ increased scrutiny of the AI chipmaker’s business practices. Nvidia is accused of making it difficult for buyers to switch suppliers and potentially penalising customers who don’t exclusively use its AI chips.
The investigation reportedly stems from complaints by competitors who claim Nvidia may be abusing its market dominance. Several other companies have also received subpoenas as part of the broader probe. The escalating crackdown coincides with increased caution among investors regarding AI companies, as concerns about overspending and high expectations loom.
Despite a worldwide growth in demand for AI chips, Nvidia’s recent quarterly forecast disappointed investors, leading to a sharp drop in its share value. The company’s stock fell 2.5% in extended trading on Tuesday, following a 9.5% decline during regular market hours. This scrutiny adds further pressure to the AI giant during a sensitive period for the industry.
Nvidia declined to comment on the ongoing investigation, while the United States Department of Justice has yet to respond to requests for further information. The outcome of this probe could have significant implications for the company and the broader AI market.
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