Topline An Nvidia spokesperson said Wednesday the company was not subpoenaed by the Justice Department, contrasting a report Tuesday that the company received a subpoena for information as part of an ongoing antitrust investigation into some of the technology sector’s biggest players.
Key Facts Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines.
Text “Alerts” to (201) 335-0739 or sign up here.
Tangent Nvidia shares closed down 9.5% on Tuesday at $108, later dropping more than 1.5% in after-hours trading.
The chip designer has been in a slump since reporting record-setting earnings last week that failed to meet investors’ loftiest expectations.
However, the tech company’s stock is still well up on the year after starting January at $48.17 per share.
Key Background Nvidia is one of multiple tech giants involved in the Justice Department investigation, which is also looking into Microsoft’s partnership with OpenAI.
The Nvidia probe comes as the company is estimated to control between 70% and 95% of the market for AI chips, according to CNBC.
Regulators have not filed a formal complaint against Nvidia, which also dealt with Justice Department subpoenas in 2006 over an antitrust investigation into its graphics chips.
Further Reading U.S. Regulators Are Looking Into Microsoft, Nvidia And OpenAI (Forbes)
First line.
In contrast to a report published on Tuesday, which stated that the company had received a subpoena for information as part of an ongoing antitrust investigation into some of the largest players in the technology sector, an Nvidia spokesperson stated on Wednesday that the company had not received a subpoena from the Justice Department.
Important Details.
Deviation.
In Tuesday’s after-hours trading, Nvidia’s shares fell more than 0.5 percent, closing the day at $108.50, down 9.5%. Since the chip designer revealed record-breaking earnings last week that fell short of investors’ high expectations, the company has been struggling. Wednesday saw another 1.7 percent decline in shares, bringing the total loss over the last week to over 15 percent. The tech company’s stock, which began the year at $48.17 per share, is still significantly higher this year.
Important Background.
The Justice Department is investigating Microsoft’s partnership with OpenAI, and Nvidia is one of several tech giants involved in the probe. As per CNBC, Nvidia is thought to hold a 70–95% market share in AI chips. This is why the company is conducting this investigation. Amazon, Google parent company Alphabet, Microsoft, and Meta are among the company’s biggest and most renowned clients; according to Bloomberg, Microsoft and Meta devote 40% of their budgets to Nvidia’s hardware. Nvidia, which also complied with Justice Department subpoenas in 2006 regarding an antitrust investigation into its graphics chips, has not been the subject of a formal complaint from regulators.
Read More.
You. s. According to Forbes, regulators are investigating Microsoft, Nvidia, and OpenAI.
