AI tokens react to Nvidia subpoena from DoJ

• Artificial intelligence tokens have seen major declines, fueled by the massive loss in Nvidia stock.
• Nvidia has received a subpoena from the Department of Justice (DOJ) for an antitrust investigation.
• TAO, ASI and RENDER recorded the biggest declines in the last 24 hours.

Artificial intelligence (AI)-based cryptocurrencies fell in the Asian trading session on Wednesday following reports that Nvidia (NVDA) wiped $280 billion off its market cap. The decline can be attributed to a subpoena issued to chipmaker giant Nvidia by the US Department of Justice (DoJ).

AI tokens are down as NVDA could fall further in the event of an antitrust case

The overall AI crypto sector witnessed sharp declines on Wednesday, with a 10% drop and a $280 billion market capitalization exodus from Nvidia shares.

NVDA’s sharp decline can be attributed to the DoJ’s subpoena to Nvidia regarding an antitrust investigation. The AI ​​chip maker has joined the list of companies on the US government’s watch list, as the investigation could be a major scare for investors.

An antitrust investigation is any investigation conducted by a government authority to enforce antitrust laws. The government puts these laws into effect to regulate the conduct of organizations and to prevent unjustified monopolies.

Several AI tokens gained on Monday following partnership deals and a general market recovery. However, the token category’s close relationship with NVDA caused losses in the sector.

According to a post by The Kobeissi Letter on X, the DoJ is seeking evidence against Nvidia and several other AI chip makers. With Nvidia currently controlling around 90% of the overall AI market, this could have a negative impact on the crypto AI market.

News of a subpoena could spread FUD and lead to further declines in token prices within the sector. For example, several major AI tokens have started to experience declines in recent hours.

Bittensor ( TAO ), Artificial Superintelligence Alliance ( FET ), and Render ( RENDER ) were among the hardest hit, with declines of 12%, 9%, and 7%, respectively. Additionally, Near Protocol (NEAR), The Graph (GRT), and Akash Network (AKT) also fell by nearly 9% on the day.