Quick Hit:

Nvidia has denied claims that it received a subpoena from the Department of Justice regarding an antitrust investigation. The company affirmed its willingness to cooperate with any regulatory inquiries.

Key Details:

• Nvidia denied receiving a DOJ antitrust subpoena, contrary to prior reports.

• The company expressed its openness to answering any regulatory questions.

• Nvidia continues to dominate over 80% of the AI chip market.

Diving Deeper:

Nvidia, the leading AI chipmaker, has rejected reports that it received a subpoena from the U.S. Department of Justice as part of an antitrust investigation. Despite earlier claims from Bloomberg News, Nvidia confirmed to CNBC that it had not been subpoenaed. “We have inquired with the U.S. Department of Justice and have not been subpoenaed,” a company spokesperson stated. “Nonetheless, we are happy to answer any questions regulators may have about our business.”

These statements follow reports that alleged Nvidia was under investigation for using its market power to limit competition from rivals like AMD and Intel. Nvidia controls over 80% of the AI chip market, a dominance that has drawn regulatory interest due to its central role in powering AI technologies.

While Nvidia denied the issuance of a subpoena, the company's stock had already dropped nearly 10% amid concerns over AI-related investments. Nvidia’s shares have since started to recover, but the market volatility reflects broader apprehensions about the regulatory environment surrounding AI technologies.

Nvidia has previously faced regulatory scrutiny. In 2022, the company abandoned a $40 billion deal to acquire ARM after the Federal Trade Commission sued to block the merger, citing antitrust concerns. As AI technology continues to reshape industries, Nvidia's market leadership is likely to remain in the crosshairs of both U.S. and international regulators.