Chip giant Nvidia gets antitrust subpoena from US Justice Department - reports
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00:00Is AI's top dog being brought to heel?
00:04NVIDIA has reportedly been issued a subpoena by the U.S. Justice Department amid a deepening
00:09probe.
00:10Bloomberg reporting that the DOJ suspects the chipmaking giant of using monopolistic
00:15practices to keep clients from switching to other suppliers and penalizing those that
00:19don't use its chips exclusively.
00:22The company defending itself in a statement.
00:26NVIDIA wins on merit, as reflected in our benchmark results and value to customers who
00:30can choose whatever solution is best for them.
00:34The recent boom in artificial intelligence applications like ChatGPT has put NVIDIA's
00:39specialized processors in high demand, with sales more than doubling each quarter.
00:44Its annual revenues have skyrocketed from $16 billion in 2020 to more than $120 billion
00:51expected this year.
00:53Regulators are reportedly focusing on NVIDIA's recent acquisition of RunAI, which makes software
00:59that manages AI computing.
01:01Sales practices that favor clients who run NVIDIA products exclusively are also said
01:06to be under the microscope.
01:08Led by CEO Jensen Huang, NVIDIA's blockbuster performance has seen its share price more
01:13than double this year, briefly becoming the world's most valuable company.
01:18The probe comes at a pivotal moment for the industry, though, as the AI boom has been
01:23losing steam on markets over fears that its hype has far outpaced its actual economic
01:29benefits.