Nvidia has denied reports suggesting it received a subpoena from the US Department of Justice (DoJ) in connection with an ongoing investigation. The company clarified that it has not been served any legal documents from the DoJ, which is reportedly looking into matters involving artificial intelligence (AI) technology and computing components.
“We have inquired with the US Department of Justice and have not been subpoenaed,” said Nvidia. “Nonetheless, we are happy to answer any questions regulators may have about our business.”
Nvidia investigation speculation
Speculation about Nvidia’s involvement emerged after reports indicated that the DoJ was scrutinising several technology firms as part of a broader inquiry into the supply and development of high-performance chips used in AI and other advanced computing applications.
The company has not provided further information beyond this statement.
While some firms have confirmed receipt of subpoenas, Nvidia maintains it is not among them.
The DoJ has not publicly commented on the specific companies involved in its investigation, which is believed to focus on the potential misuse of technology and components crucial to developing AI, machine learning, and high-performance computing. This aligns with broader concerns in the tech industry about the ethical use and regulation of AI technology, a significant topic of policy discussions in Washington, D.C.
Nvidia is a major player in the AI and high-performance computing sectors, with its graphics processing units (GPUs) being critical for developing AI models and machine learning systems. Its products are used extensively across industries such as healthcare, automotive, and gaming, driving significant advancements in these fields.
The company reiterated its commitment to operating within legal and ethical standards.“Nvidia wins on merit, as reflected in our benchmark results and value to customers,” said one of the firm’s spokespersons. “Customers can choose whatever solution is best for them.”
Mounting regulatory interest in AI
In June 2024, the US Federal Trade Commission (FTC) and the DoJ launched an antitrust investigation involving Nvidia, OpenAI, and Microsoft. The scope is still unclear, but it includes scrutiny of Microsoft’s $620m licensing deal with AI startup Inflection, which involves selling Inflection’s models through Microsoft’s Azure platform.
The FTC and DOJ have been increasingly active in regulating AI.
Earlier this year, the FTC began inquiries into AI partnerships at companies like Alphabet, Microsoft, and Amazon, and took action against misuse of facial recognition technology. The commission has also warned companies against using sensitive data to develop AI models and investigated Reddit’s use of user-generated content for AI training.
Earlier this week, Nvidia experienced a historic single-day loss as its shares dropped 9.5%, reducing its market capitalisation by $279bn. The sharp decline was driven by a recent quarterly outlook that fell short of investor expectations. Nvidia’s valuation had surged recently, fuelled by strong demand for AI technologies and its leadership in AI chip manufacturing, which had elevated its market value above other tech giants like Alphabet and Amazon.
Read more: Just how high can Nvidia fly?
