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Overview:
- Probe: The U.S. Department of Justice (DOJ) is investigating Nvidia for alleged antitrust violations related to its dominance in the artificial intelligence (AI) chip market.
- Complaints: The investigation follows complaints from rivals such as AMD.
Key Points:
- Allegations:
- Pricing Practices: The DOJ is examining if Nvidia has charged higher prices to customers who purchase AI chips from competitors.
- Product Pressure: Investigators are also looking into whether Nvidia has pressured customers to buy additional products, like server cables.
Nvidia’s Response:
- Spokesperson Statement: Nvidia stated that it “wins on merit” and adheres to all laws. The company emphasized its long-standing investment and innovation and is open to providing any needed information to regulators.
Market Impact:
- Stock Movement: Nvidia shares fell 3.5% in premarket trading amid a broader decline in semiconductor stocks.
Additional Context:
- Nvidia’s Market Position: Nvidia is a leader in the AI chip market, and its dominance has drawn scrutiny from competitors and regulators alike.