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Nvidia shares weakened by possible lawsuit

Translate from : Nvidia aktier svækkes af mulig stævning

NVIDIA has officially stated that they "have not been subpoenaed" by the DOJ. In its statements to various media outlets, the company noted: "We have inquired with the US Department of Justice and have not received a subpoena. Nevertheless, we are happy to answer any questions the authorities may have about our business."

But if that's an accurate description of the situation, why didn't NVIDIA come out publicly with this yesterday or early this morning? After all, the GPU maker lost over $280 billion in market value on Tuesday, with most of those losses attributed to a small group of investors who presumably had knowledge of the situation, according to the usual talk.

Of course, other industry commentators still argue that NVIDIA's abnormal losses on Tuesday were simply the result of a worsening economy. According to Patrick Moorhead, director of Moor Insights, "institutional investors don't care until there is a decision."

Frankly, NVIDIA's slowness in responding to the controversy surrounding the call has raised more questions than it has answered. Is it simply because the company has not yet physically received a subpoena and that it might still appear? We will likely learn a lot more about this case in the coming days.

As we mentioned yesterday, DOJ investigators are reportedly looking into NVIDIA's alleged practice of giving preference in price and/or delivery to customers who exclusively use the company's AI chips or deploy NVIDIA's complete systems, according to Bloomberg reporting. Note that Huang has previously stated that NVIDIA prioritizes customers deploying its products in the pre-engineered data centers, presumably to prevent hoarding.

The DOJ is also investigating NVIDIA's acquisition of RunAI, a maker of AI computer software. According to DOJ officials, this acquisition could make it more difficult for customers to switch away from NVIDIA's solutions.

NVIDIA is trying to become an all-in-one provider for all things AI, which includes not only dedicated AI accelerators (chips), but also software-based solutions for training AI models as well as optimizing data center design – all in in line with the "AI factory" that the GPU maker's CEO, Jensen Huang, has described.