More subpoenas against Nvidia as US antitrust case continues
According to reports, the US Department of Justice (DOJ) has intensified its antitrust investigation into Nvidia. Bloomberg.
The Justice Department has now issued subpoenas seeking evidence that the AI chip giant is engaging in business practices that allow it to monopolize the market.
The investigation focuses on concerns that Nvidia could hinder competition by making it difficult for customers to purchase competing products.
Nvidia is under antitrust scrutiny
Bloomberg cites anonymous sources familiar with the matter who say the Justice Department, which previously sent out questionnaires, is now sending legally binding requests for information.
In addition, the DOJ has also set its sights on Nvidia’s acquisition of RunAI, an AI computer management software company, amid concerns that the merger could further impede competition.
Nvidia’s success has largely been due to its rapid adoption of artificial intelligence – its powerful chips have proven instrumental in building and maintaining high-performance AI data centers. The company currently has a market cap of $2.02 trillion, after peaking at over $3 trillion earlier this year and briefly becoming the world’s most valuable company.
While companies like Intel and AMD have introduced their own products, Nvidia’s early and strong entry into the market has positioned the company for future growth.
The dominant chipmaker is not only being closely watched in the US. French competition authorities have also launched an investigation as part of a broader investigation into the cloud computing market. The EU is also reportedly looking into Nvidia’s business practices.
Ny Breaking has reached out to Nvidia for comment on the ongoing investigation. If we receive a response, we will update this story.