Nvidia Corp. responded to a Bloomberg News report that the U.S. Department of Justice (DoJ) was sending subpoenas as part of an antimonopoly investigation. The company said it has been in contact with the government agency but has not yet received a subpoena.
The DOJ often sends requests for information in the form of what’s known as a civil investigative demand, commonly referred to as a subpoena. The Department of Justice (DoJ) sent such a request seeking information about Nvidia’s acquisition of RunAI and aspects of its chip business, according to a person with direct knowledge of the matter.
Nvidia responded to the story by stating that its lead in the AI computing market stems from the superiority of its products.
“Nvidia wins on the merits, as demonstrated by our benchmark results and value to customers, and customers can choose which solution is best for them,” the company said in a statement, adding: “We have made inquiries with the U.S. Department of Justice and have not been subpoenaed. Nevertheless, we are happy to answer any questions regulators may have about our business.”
In the investigation, which Bloomberg reported earlier in June, investigators have reached out to other technology companies to gather information. The DOJ’s San Francisco office is leading the investigation, people familiar with the matter said. A DOJ representative declined to comment.
Competition authorities are concerned that Nvidia is making it harder to switch suppliers and penalizing buyers who don’t exclusively use the company’s artificial intelligence chips, according to the sources, who spoke on condition of anonymity because the discussions are confidential.
Regulators are investigating the purchase of RunAI, a deal announced in April. That company makes software for managing AI computing, and there are concerns the tie-up will make it harder for customers to switch from Nvidia chips. Regulators are also questioning whether Nvidia gives preferential shipping and pricing to customers who exclusively use its technology or buy its complete systems, the sources said.
Nvidia has faced regulatory scrutiny since it became the world’s most valuable chipmaker and a major beneficiary of the AI spending boom. Sales have more than doubled every quarter, outpacing former chip leaders such as Intel Corp.
© 2024 Bloomberg LP
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
