Nvidia in the Crosshairs: US Justice Department Escalates Antitrust Probe with Subpoena Amid Company’s Record-Setting Market Rout

The US Justice Department has issued a subpoena to Nvidia, marking an intensification in the ongoing antitrust investigation. This move puts Nvidia on the verge of dealing with an official complaint that may center on the question of whether the AI chip manufacturer creates obstacles for customers trying to change suppliers.

The Department of Justice, which had earlier distributed queries to firms, has currently begun issuing legal mandates necessitating the concerned parties to furnish pertinent information, as per individuals acquainted with the probe. This move brings the government a notch nearer to initiating a formal grievance.

Shares of Nvidia, which witnessed an unprecedented US$279 billion plunge on Tuesday, continued to dip during after-hours trading following reports of subpoicenas by Bloomberg. Despite this, the stock's value has surged over two-fold this year, driven by a massive increase in sales for the chip manufacturer based in Santa Clara, California.

The investigation, which Bloomberg first mentioned in June, involves reaching out to various tech firms to collect data. The Department of Justice's San Francisco branch is spearheading this investigation, according to sources. However, a spokesperson for the Department of Justice has refused to make any comments.