Nvidia Corp., responding to a Bloomberg News report about the US Department of Justice (DoJ) sending out subpoenas as part of an antitrust probe, said it has been in contact with the government agency but hasn't been subpoenaed.
The DOJ often sends requests for information in the form of what's known as a civil investigative demand, which is commonly referred to as a subpoena. The Department of Justice (DoJ) has sent such a request seeking information about Nvidia's acquisition of RunAI and aspects of its chip business, according to one person with direct knowledge of the matter.
In its response to the story, Nvidia said that its edge in the AI computing market stems from the superiority of its products.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,” the company said in a statement, adding, “We have inquired with the US Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.”
In the probe, which Bloomberg previously reported in June, investigators have been contacting other technology companies to gather information. The DOJ's San Francisco office is taking the lead running the inquiry, people familiar with the matter said. A representative for the DOJ declined to comment.
Antitrust officials are concerned that Nvidia is making it harder to switch to other suppliers and penalises buyers that don't exclusively use its artificial intelligence chips, according to the people, who asked not to be identified because the discussions are private.
Regulators have been investigating the purchase of RunAI, a transaction announced in April. That company makes software for managing AI computing, and there are concerns that the tie-up will make it more difficult for customers to switch away from Nvidia chips. Regulators also are inquiring whether Nvidia gives preferential supply and pricing to customers who use its technology exclusively or buy its complete systems, according to the people.
Nvidia has drawn regulatory scrutiny since becoming the world's most valuable chipmaker and a key beneficiary of the AI spending boom. Sales have been more than doubling each quarter, and it's eclipsed onetime chip leaders such as Intel Corp.
© 2024 Bloomberg L.P.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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