Nvidia gets subpoena from US Justice dept as antitrust probe deepens

“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” a spokesperson for the company said.

 

Last month, the Information reported the Department of Justice had launched an investigation into the company after complaints from competitors that it had abused its market dominance.

 

The subpoena comes at a delicate time for AI-related companies as investors recalibrate expectations around the technology amid worries about slow payoffs from hefty investments in it.

 

The company said last week it has received requests for information from regulators in the US and South Korea, regarding its investments, partnerships and agreements with other companies. It has also received inquiries from the EU, UK and China.

 

Nvidia’s quarterly forecast, which fell short of investors’ expectations last week, has also softened the optimism around AI.

 

The company’s shares fell 1.5 per cent in extended trading on Tuesday after losing 9.5 per cent in the regular session, slashing Nvidia’s market capitalization by $279 billion, a record one-day loss for any company.

 

The shares, however, are still up 141 per cent so far this year, thanks to a dizzying rally sparked by AI expectations.

 

The DoJ declined to comment when contacted by Reuters.

First Published: Sep 04 2024 | 9:14 AM IST