Nvidia faces antitrust scrutiny from DOJ over AI chip dominance and RunAI acquisition

Nvidia, in a response to a Bloomberg News report about the US Department of Justice sending out subpoenas as part of an antitrust probe, said it has been in touch with the government agency but hasn't been subpoenaed.

Those requests often come in the form of what's called a civil investigative demand, but is better known as a subpoena. The Department of Justice issued one such request to Nvidia for information related to its acquisition of RunAI, along with other areas of its chip business, one person with direct knowledge of the matter said.

Nvidia, in response to the story, said its lead in the market for AI computing is a function of its superior products.

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“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,” the company said in a statement, adding, “We have inquired with the US Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.”

In the probe, which Bloomberg earlier reported in June, investigators have been reaching out to other technology companies for information. The DOJ's San Francisco office is taking the lead in running the inquiry, people familiar with the matter said. A representative for the DOJ declined to comment.

The people, who asked not to be identified because the discussions are private, said antitrust officials are concerned Nvidia is making it harder to switch to alternative suppliers and penalise buyers that don't exclusively use its artificial intelligence chips.

The regulators have been investigating the purchase of RunAI, announced in April. That company makes software to help manage AI computing and there are concerns the tie-up will make it harder for customers to switch away from Nvidia chips. Regulators also are inquiring whether Nvidia gives preferential supply and pricing to customers that use its technology exclusively or buy its complete systems, according to the people.

Nvidia has drawn regulatory scrutiny since it became the world's most valuable chipmaker and a key beneficiary of the AI spending boom, with sales more than doubling each quarter while it's eclipsed one-time chip leaders such as Intel Corp.