Nvidia subpoenaed by US Justice Department in escalating antitrust probe
The subpoena brings Nvidia closer to facing a formal complaint, which could focus on whether the AI chip maker makes it harder to switch suppliers.
The DOJ, which had previously delivered questionnaires to companies, is now sending legally binding requests that oblige recipients to provide information, according to people familiar with the investigation. That takes the government a step closer to launching a formal complaint.
Nvidia shares, which suffered a record-setting US$279 billion rout on Tuesday, fell further in late trading after Bloomberg reported on the subpoenas. Still, the stock has more than doubled this year – fuelled by explosive sales growth at the Santa Clara, California-based chip maker.
As part of the probe, which Bloomberg previously reported in June, investigators have been contacting other technology companies to gather information. The DOJ’s San Francisco office is taking the lead running the inquiry, the people said. A representative for the DOJ declined to comment.
In response to questions about the probe, Nvidia said that its market dominance stems from the quality of its products, which deliver faster performance.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” the company said in an emailed statement.