The U.S. Department of Justice’s antitrust investigation into Nvidia’s AI market dominance is reportedly intensifying, according to Bloomberg. Sources suggest that Nvidia and other companies have been issued legally binding requests for information, as regulators scrutinize whether Nvidia is “making it harder to switch to other suppliers and penalizes buyers that don’t exclusively use its artificial intelligence chips.”
Earlier this year, Nvidia had momentarily surpassed Microsoft to become the world’s most valuable company. However, it now trails both Microsoft and Apple. Before news of the subpoenas emerged on Tuesday afternoon, Nvidia’s stock took a hit, dropping over 9%, which erased around $279 billion from its market value in a single day.
Despite these developments, Bloomberg highlights that Nvidia’s stock has more than doubled this year, thanks to a surge in demand for its high-priced AI chips amid the ongoing AI boom. This comes even as a report from The Information indicated that Nvidia’s forthcoming Blackwell series of AI chips could face a delay “by three months or more due to design flaws.”
