Bloomberg reports that the US Department of Justice has issued a subpoena to NVIDIA for an investigation into its AI-related business practices, following similar actions taken against other AI chip manufacturers.
The Department of Justice raised concerns that led to the investigation, including design choices that make it difficult for customers to switch chip providers for AI projects, as well as allegations from competitors that NVIDIA uses market power to inflate prices of network equipment when using rival chips for processing.
The fallout from this news saw NVIDIA’s stock price drop by up to 9.5%, resulting in a $2.79 billion decrease in market value, the biggest single-day decline for a company in the US stock market since Meta in 2022.
Both NVIDIA and the US Department of Justice have declined to comment on this news.
TLDR: The US Department of Justice investigates NVIDIA for its AI-related business practices, leading to a significant drop in the company’s stock price and market value.
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