Nvidia CEO Jensen Huang speaks during Computex 2024 successful Taipei connected June 4, 2024.
I-hwa Cheng | AFP | Getty Images
Nvidia shares fell 2% successful extended trading aft Bloomberg reported that the institution received a subpoena from the Department of Justice arsenic portion of an antitrust investigation.
The descent comes aft Nvidia dropped astir 10% during regular trading, wiping $279 billion disconnected its marketplace cap.
The DOJ probe has not reached the signifier of a ceremonial complaint, according to Bloomberg, and the bureau is asking questions astir whether Nvidia makes it harder to power to different suppliers of AI chips. Nvidia has over 80% of the market for information halfway AI chips, according to manufacture estimates.
Nvidia's immense emergence successful caller years has been straight tied to its dominance successful AI chips for information centers, established years earlier competitors AMD and Intel started taking the class seriously. Nearly a decennary ago, Nvidia developed a programming connection for its chips, called CUDA, which is simply a cardinal instrumentality for engineers who bid precocious AI models similar the 1 astatine the bosom of ChatGPT.
Many of Nvidia's apical customers are unreality companies arsenic good arsenic net giants, including Microsoft, Alphabet, Meta, Amazon, and Tesla.
As Nvidia's AI chips person go a blistery commodity, the institution has released new endeavor bundle subscriptions and marketed its networking products arsenic important compliments to get the astir retired of its chips.
Recent versions of Nvidia's chips tin travel pre-installed successful entire Nvidia-designed server racks, an illustration of Nvidia's effort to determination from being a specified parts supplier to an full systems provider.
Representatives from Nvidia and the DOJ declined to remark to CNBC.
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