The US Justice Department has escalated its investigation into Nvidia for possible antitrust violations, sending subpoenas to the chip maker and other companies. Concerns have been raised about Nvidia making it difficult for customers to switch suppliers and penalizing those who don’t exclusively use its AI chips. The DOJ’s move to issue legally binding requests indicates a step closer to launching a formal complaint against Nvidia.
Nvidia shares took a hit after news of the subpoenas broke, following a significant drop earlier. Despite this, the company’s stock has more than doubled this year due to strong sales growth. The DOJ’s San Francisco office is leading the inquiry, contacting other tech companies for information. However, a spokesperson for the DOJ declined to comment on the ongoing investigation.