Nvidia receives subpoena from US DoJ, Bloomberg News reports

(Reuters) – The U.S. Justice Department has subpoenaed Nvidia as it deepens its investigation into AI’s antitrust practices, Bloomberg News reported, citing people familiar with the investigation.

The antitrust watchdog previously sent questionnaires and now sent legally binding requests to Nvidia, the report said, adding that other companies had also received subpoenas.

Officials are concerned that the chipmaker is making it difficult to switch to other vendors and penalizing buyers who don’t exclusively use its AI chips, the report said.

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

The subpoena comes at a delicate time for AI companies as investors recalibrate their expectations of the technology amid concerns about slow returns from heavy investment in it.

Nvidia’s quarterly forecast, which fell short of investor expectations last week, also dampened optimism around AI.

The company’s shares fell 2.5 percent in extended trading on Tuesday after losing 9.5 percent in the regular session, cutting Nvidia’s market capitalization by $279 billion, a record one-day loss for any company.

The stock, however, is still up 141% this year, thanks to a heady rally sparked by AI expectations.

Nvidia and the DoJ declined to respond to Reuters requests for comment.

(Reporting by Niket Nishant in Bengaluru; Additional reporting by Jody Godoy and Max Cherney; Editing by Tasim Zahid and Shinjini Ganguli)