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Key Takeaways
- Nvidia reportedly is facing a U.S. Department of Justice investigation over its acquisition of Run:ai, and another DOJ probe over allegedly using its market position to engage in anti-competitive behavior.
- Nvidia shares were down 3% in intraday trading Friday, a day after the reports by Politico and The Information, amid a continued selloff in tech stocks.
- Nvidia shares have more than doubled this year.
Nvidia (NVDA) reportedly is facing two separate U.S. Department of Justice (DOJ) antitrust investigations.
The first probe is connected to the semiconductor giant’s April acquisition of Israel-based startup Run:ai, according to a Politico report Thursday, which cites “five people with direct knowledge of the matter.” Run:ai specializes in the visualization of graphics processing units (GPUs), and its technology enables Nvidia’s clients to do more with fewer chips, the report said.
The second is investigating whether Nvidia is putting pressure on customers not to buy its rivals’ products, as reported by The Information Thursday. The DOJ has reached out to “several” of Nvidia’s competitors, including Advanced Micro Devices (AMD), “to gather information about the complaints,” the report said, citing “two people involved in the discussions.”
Nvidia Defends Its Competitiveness
Nvidia insists it isn’t operating illegally.
“NVIDIA wins on merit, as reflected in our benchmark results and value to customers,” a spokesperson told Investopedia. “We compete based on decades of investment and innovation, scrupulously adhering to all laws, making NVIDIA openly available in every cloud and on-prem for every enterprise, and ensuring that customers can choose whatever solution is best for them. We’ll continue to support aspiring innovators in every industry and market and are happy to provide any information regulators need.”
The DOJ didn’t immediately respond to an Investopedia request for comment Friday.
Shares of Nvidia fell 3% to $105.75 as of 3 p.m. ET Friday as the tech selloff continued. Still, the stock has more than doubled in price so far in 2024.