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ARTICLE · 06 SEPTEMBER 2024

Nvidia Faces DOJ Antitrust Investigation: A Potential Turning Point In The AI Industry

Gesmer Updegrove LLP
Gesmer Updegrove LLP
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Gesmer Updegrove LLP

Gesmer Updegrove LLP

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The U.S. Department of Justice (DOJ) has significantly escalated its antitrust investigation into Nvidia Corp., the world's leading AI chipmaker, by issuing subpoenas not only to Nvidia but also to third-party companies.

United StatesAntitrust/Competition Law

The U.S. Department of Justice (DOJ) has significantly escalated its antitrust investigation into Nvidia Corp., the world's leading AI chipmaker, by issuing subpoenas not only to Nvidia but also to third-party companies. This marks a critical step forward in a probe that has been quietly gaining momentum over the past several months. The investigation centers on whether Nvidia's business practices have unfairly restricted competition in the rapidly growing AI chip market, with potential implications for the broader tech industry.

DOJ's Focus: Allegations of Anti-Competitive Practices

According to sources familiar with the investigation, the DOJ is scrutinizing whether Nvidia has made it difficult for buyers to switch to other suppliers and whether the company penalizes those who do not exclusively use its AI chips. Nvidia's dominant position in the AI market has raised concerns that its practices may stifle competition, making it harder for competitors to gain

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