The U.S. Department of Justice (DOJ) has reportedly opened an antitrust investigation into Nvidia, following complaints that the tech giant may have abused its market dominance in artificial intelligence (AI) chips. 

Earlier this week, VCPost shared that more than competitors, US Senator Warren and progressive groups have urged DOJ to start the probe. Now, the investigation aims to determine whether Nvidia engaged in anti-competitive practices that could have stifled competition used its dominant position to unfairly disadvantage competitors.

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Nvidia Antitrust Probe

As part of the probe, CNBC reported that the DOJ has reached out to Nvidia's rivals, including AMD, to gather information on the allegations. Investigators are reportedly examining whether Nvidia imposed higher prices on customers who purchased AI chips from other suppliers, such as AMD. 

Additionally, the DOJ is investigating whether Nvidia pressured customers into buying supplementary products, like cables that connect servers, as part of a broader strategy to maintain its market dominance.

In response to the allegations, a spokesperson for Nvidia explained that the company competes fairly, focusing on the quality of its products and innovations. They emphasized that Nvidia follows all laws and offers its products widely, allowing customers to choose the best solution for their needs. 

The company also expressed its willingness to cooperate with regulators and provide any necessary information for the investigation.

The announcement of the DOJ investigation immediately affected Nvidia's stock, causing shares to drop 3.5% in premarket trading.

Both Nvidia and the DOJ were unavailable for further comment. 

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