Nvidia CEO Jen-Hsun Huang speaks at Computex 2024 in Taipei on June 4, 2024.
Zheng Yihua | AFP | Getty Images
NVIDIA Shares fell 2% in after-hours trading Bloomberg reports The company received a subpoena from the Justice Department as part of an antitrust investigation.
Previously, Nvidia’s stock price fell by nearly 10% in regular trading, and its market value evaporated by US$279 billion.
According to Bloomberg, the U.S. Department of Justice’s investigation has not yet reached the stage of a formal complaint, and the agency is asking whether Nvidia has made it more difficult to switch to other artificial intelligence chip suppliers. According to industry estimates, NVIDIA occupies more than 80% of the market for data center artificial intelligence chips.
Nvidia’s dramatic rise in recent years is directly related to its dominance of data center artificial intelligence chips, a dominance years before rivals AMD and Intel began taking the category seriously. About a decade ago, Nvidia developed a programming language called CUDA for its chips, which is a key tool for engineers training high-level artificial intelligence models, such as the ChatGPT core model.
Many of Nvidia’s top customers are cloud companies and web giants, including Microsoft, Alphabet, Meta, Amazon and Tesla.
As Nvidia’s artificial intelligence chips become a hot commodity, the company is launching new enterprise software subscriptions and marketing its networking products as essential complements to getting the most out of its chips.
The latest version of Nvidia chips can be pre-installed in Entire Nvidia-designed server rackThis is an example of Nvidia’s efforts to transform from a mere parts supplier to a complete system provider.
Representatives for Nvidia and the Justice Department declined to comment to CNBC.
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