Semiconductor magnate NVIDIA has denied allegations that it indulges in anti-competitive practices, following news of a US Department of Justice investigation, reported by Bloomberg news agency.
“NVIDIA has succeeded on its own merit, as evidenced by comparative studies and its customers, who are free to choose what’s best for them,” a spokesperson for the California-based company said on Wednesday.
Several US media outlets have reported that the firm received a request for documents from the Department of Justice, as part of an investigation into potential competition law violations.
However, when approached, neither the company nor the Justice Department confirmed that request.
Bloomberg reports that the investigation aims primarily to ascertain whether NVIDIA prevents customers from switching suppliers or diversifying their supply chain.
Following the rise of generative artificial intelligence, NVIDIA’s graphics processing units, GPUs, have made the company a key player in the field’s development.
Its GPUs offer significantly higher computing capabilities than competitors,' becoming integral to the creation of large language models, software that generates content in everyday language upon request.
By the first quarter of 2024, NVIDIA’s market share of graphics cards stood at 88%, according to Jon Peddie Research.
In mid-July, the French Competition Authority confirmed that it was also investigating the company for suspected anti-competitive practices.
By Tuesday evening, NVIDIA’s stock had plummeted by 9.53% on the New York Stock Exchange.
