Nvidia receive Subpoena amid US antitrust probe
Nvidia and other tech giants have been subpoenaed as part of a US antitrust probe
Bloomberg has confirmed that Nvidia has received a subpoena from the US Justice Department as part of their ongoing antitrust probe into the company. Nvidia are alleged to have used anti-competitive practices to limit competition and force customers to Nvidia products.
Subpoenas have also been sent to 3rd parties. These 3rd parties are likely to be tech companies who are Nvidia customers. Subpoenas are legally binding requests for information, where recipients are obliged to provide accurate information. The information gathered from this round of Subpoenas should bring the US Justice Department one step closer to launching a formal complaint against Nvidia. This is assuming that they find evidence of Nvidia’s alleged anti-competitive practices.
Since news of Nvidia’s Subpoena became public, the company’s stock price has dropped by over 10%.
Nvidia has already responded to news of this Subpoena and have released the following statement;
[Nvidia] wins on merit, as reflected in benchmark results and value to customers, who can choose whatever solution is best for them.
In France, a similar investigation into Nvidia is being conducted by the Autorite de la Concurrence. Last year, French authorities raided an Nvidia offices over alleged anticompetitive practices.
This is not the first time that Nvidia has been called out for alleged anti-competitive practices in the GPU/AI market. Last year, one of their former GeForce manager called the company a “GPU Cartel” that “control all supply”.
Groq CEO Jonathan Ross has also stated that Nvidia customers often meet Nvidia’s rivals in secret to prevent retaliatory delays in AI hardware orders.
Currently, it’s unknown what the result of the US DOJ’s investigation will be. After all, the investigation remains ongoing. Regardless, Nvidia will need to be extra careful now that this investigation is underway, as Nvidia do not want to face punishment for these alleged actions.
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