Nvidia stock slips on reports of DOJ antitrust probe

Investing.com-- NVIDIA Corporation (NASDAQ:NVDA) is facing a probe from the U.S. Department of Justice over complaints its rivals that the chipmaker is abusing its market dominance in developing advanced chips for artificial intelligence, according to a report by The Information on Thursday.

Nvidia stock fell 3.6% in premarket trading Friday, extending its losses from a day prior.

U.S. officials had reached out to several Nvidia competitors, including Advanced Micro Devices Inc (NASDAQ:AMD), to investigate complaints over potential antitrust activities, The Information reported, citing two sources involved in the discussions.

Complaints included allegations that the chipmaker was threatening to punish customers who bought products from its rivals, as well as antitrust concerns over the firm’s acquisition of AI startups to strengthen its hold on the industry.

The report comes just after a report from Politico earlier in the day showed Nvidia was facing an antitrust investigation over its acquisition of Run:ai in late-April.

An Nvidia spokesperson said "NVIDIA wins on merit... We compete based on decades of investment and innovation, scrupulously adhering to all laws."

The firm produces the most advanced chips used to run artificial intelligence programs, and saw a massive valuation spike over the past year as it benefited from increasing interest in AI.

But Nvidia’s dominance in the sector has called into question whether the firm is potentially skirting antitrust regulations.

Earlier on Thursday, reports also showed that U.S. progressive groups and Democratic Senator Elizabeth Warren called on the DOJ to investigate Nvidia over anti-competitive behavior.

Ambar Warrick contributed to this report.

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