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The US Department of Justice (DOJ) has reportedly stepped up its antitrust investigation into Nvidia, according to Bloomberg.
Now, the DOJ has issued subpoenas to gather evidence that the AI chip giant could be engaging in business practices that enable it to monopolize the market.
The investigation addresses concerns that Nvidia could be preventing competition by making it difficult for customers to adopt rival products.
Nvidia is under the antitrust microscope
Bloomberg cites unnamed sources familiar with the matter who claim that the DOJ, which previously sent out questionnaires, is now sending legally binding requests for information.
Moreover, the DOJ also has its eyes on Nvidia’s acquisition of RunAI, an AI computing management software company. Concerns are raised that the merger could further inhibit competition.
Nvidia’s success has been largely thanks to the rapid adoption of artificial intelligence – its powerful chips have proven instrumental in setting up and maintaining high-performance AI datacenters. The company currently has a market cap of $2.02 trillion, after peaking at more than $3 trillion earlier this year and temporarily becoming the world’s most valuable company.
While companies like Intel and AMD have introduced their own products, Nvidia’s early and strong entry to the market positioned it well for future growth.
The dominating chipmaker isn’t only facing scrutiny in the US – French antitrust regulators have also launched an investigation as part of a broader look into the cloud computing market, and the EU is reportedly examining Nvidia’s business practices.
TechRadar Pro has asked Nvidia to comment on ongoing investigatory work, and we’ll be sure to update this story with a response if we receive one.
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