NVIDIA Denies DOJ Subpoena Allegations Amid Market Turbulence

In a surprising turn of events, NVIDIA has publicly denied receiving a subpoena from the U.S. Department of Justice (DOJ), despite recent reports suggesting otherwise. This development comes on the heels of a significant drop in NVIDIA’s stock value, which saw the company lose nearly $280 billion in market capitalization.

The Allegations

The controversy began when Bloomberg reported that the DOJ had issued a subpoena to NVIDIA as part of an antitrust investigation. The investigation is reportedly focused on NVIDIA’s business practices, particularly its alleged preferential treatment of customers who exclusively use its AI chips and systems. Additionally, the DOJ is said to be scrutinizing NVIDIA’s acquisition of AI computing software maker RunAI, which some believe could hinder competition.

NVIDIA’s Response

In response to these allegations, NVIDIA has firmly stated that it has not received any subpoena from the DOJ. The company emphasized its commitment to fair competition and compliance with all relevant laws. “We have not been subpoenaed by the DOJ,” NVIDIA asserted in a recent statement.

Market Impact

The news of the alleged subpoena had an immediate impact on NVIDIA’s stock, causing a sharp decline. This market reaction underscores the sensitivity of investors to regulatory scrutiny, especially in the highly competitive and rapidly evolving AI sector.

Industry Reactions

Industry experts have weighed in on the situation, with some suggesting that the market’s reaction may be overblown. Patrick Moorhead, CEO of Moor Insights, noted that institutional investors typically remain unfazed until there is a concrete ruling. However, the delay in NVIDIA’s response to the initial reports has raised questions and fueled speculation about the company’s business practices.

Looking Ahead

As the situation unfolds, it remains to be seen whether the DOJ will indeed issue a subpoena to NVIDIA. For now, the company’s denial has added another layer of complexity to an already volatile market scenario. Investors and industry watchers will be keeping a close eye on further developments in this ongoing saga.

Stay tuned for more updates on this story as it develops.