Nvidia is reportedly the subject of two antitrust investigations by the U.S. Department of Justice (DOJ), raising concerns about its market practices and recent acquisitions.
According to Politico, the DOJ is investigating Nvidia’s April acquisition of Israeli startup Run:ai. Run:ai specializes in GPU visualization technology, which enhances Nvidia’s ability to maximize efficiency with fewer chips. The probe is focused on whether the acquisition might stifle competition in the GPU market.
Additionally, The Information reports that the DOJ is examining allegations that Nvidia has used its dominant market position to pressure customers into avoiding rival products. The investigation includes interviews with competitors such as Advanced Micro Devices (AMD) to assess these claims.
In response to the investigations, Nvidia has asserted that its business practices comply with legal standards. A company spokesperson stated, “Nvidia succeeds through merit, as demonstrated by our performance benchmarks and the value we deliver to customers. We operate transparently and follow all laws, offering our solutions across various platforms and supporting innovation across industries. We are prepared to cooperate fully with regulators.”
Following the reports, Nvidia’s stock experienced a 3% decline to $105.75 in intraday trading, continuing a broader trend of tech sector sell-offs. Despite this, Nvidia’s shares have more than doubled in value this year.
The DOJ has yet to respond to requests for comment on the ongoing investigations.
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