Nvidia Denies Receiving Subpoena in DOJ Antitrust Investigation – Nvidia Corp. (NVDA) has announced that it has not received a subpoena from the US Department of Justice (DOJ). This statement contradicts an earlier report from Bloomberg News. Typically, the DOJ issues civil investigative demands, also known as subpoenas, to collect information during antitrust investigations.
In June, Bloomberg reported that the DOJ had sent a request to Nvidia. This request was related to Nvidia’s acquisition of RunAI and its chip business practices. In response, Nvidia clarified that it has not been subpoenaed and has reached out to the DOJ for clarification.
Nvidia Denies Receiving Subpoena in DOJ Antitrust Investigation -Company’s Position
Nvidia stressed that its success in the AI computing market comes from product superiority. They stated, “Nvidia wins on merit, as reflected in our benchmark results and value to customers. Customers can choose whatever solution is best for them.”
Focus of the DOJ Investigation
Sources indicate that the DOJ’s investigation is concerned with Nvidia’s practices. They suspect that Nvidia might be making it hard for customers to switch to other suppliers. Additionally, there are claims that Nvidia penalizes buyers who do not use its AI chips exclusively. The DOJ is also looking into the acquisition of RunAI, which develops AI management software. Regulators worry that this deal could limit customers’ options to move away from Nvidia chips.
Nvidia Denies Receiving Subpoena in DOJ Antitrust Investigation – Growth and Regulatory Attention
Nvidia has quickly become the world’s most valuable chipmaker. It has benefited greatly from the surge in AI spending. In fact, Nvidia’s sales have more than doubled each quarter, even outperforming established companies like Intel Corp. This rapid growth has attracted the attention of regulators.
Earlier this year, the European Union fined Nvidia €567 million for abusing its market dominance in graphics processing units. This highlights the ongoing regulatory scrutiny Nvidia faces.
Emphasis on Product Quality
Despite these regulatory challenges, Nvidia continues to emphasize the quality of its products. The company believes that customers choose its solutions based on performance and value. Nvidia added, “We have inquired with the US Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.”
Ongoing Investigation
The DOJ’s antitrust investigation into Nvidia is still active. It is unclear when this probe will conclude or what the outcomes might be for the company. As the investigation continues, Nvidia remains focused on its products and customer satisfaction.
Charts by Trading View
