Senator Elizabeth Warren Supports DOJ Antitrust Investigation into Nvidia

Sen. Elizabeth Warren backs DOJ antitrust probe into Nvidia - report (NASDAQ:NVDA)

U.S. senator Elizabeth Warren has publicly backed the Justice Department's apparent investigation into Nvidia (NASDAQ:NVDA) on concerns that the chipmaker violated antitrust laws. In a letter sent to Assistant Attorney General Jonathan Kanter on Thursday, Warren voiced her support for the investigation, urging U.S. regulators to intervene in Nvidia's meteoric rise and warning that competition in the semiconductor market will "only grow bleaker" as the company approaches total ownership of the market. "Allowing a single company so much influence over AI research, development, and monetization poses dire economic risks," Warren wrote in the letter, which was exclusively obtained by Business Insider. Earlier this week, Bloomberg reported that Nvidia (NVDA) and other companies received a subpoena tied to the Department of Justice's probe into the Jensen Huang-led company's alleged anticompetitive tactics. The chipmaker later said it did not receive a subpoena from the Dept. of Justice, despite reports that it had. "We have inquired with the U.S. Department of Justice and have not been subpoenaed. NVIDIA wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them," an Nvidia spokesperson told Seeking Alpha.

EXCLUSIVE: Sen. Elizabeth Warren backs DOJ investigation into Nvidia antitrust allegations

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. "Allowing a single company so much influence over AI research, development, and monetization poses dire economic risks," Warren wrote in the letter, which was exclusively obtained by Business Insider. Nvidia did not immediately respond to a request for comment from Business Insider. This week, Bloomberg News, citing a person familiar with the matter, reported the DOJ sent Nvidia a civil investigative demand as part of an antitrust investigation, which has been brewing since earlier this year. In Thursday's letter, Warren urged US regulators to intervene in Nvidia's meteoric rise, warning that competition in the semiconductor market will "only grow bleaker" as the company approaches total ownership of the market. "The insatiable hunger of gargantuan Big Tech companies for Nvidia chips, along with the company's opaque and preferential allocation of them, are starving startup companies of the infrastructure they need to do business and crowding academic AI researchers out of the field," she wrote. The Santa Clara-based chipmaker has undergone unprecedented growth in recent years amid the AI boom, building dominance in the semiconductor market as Big Tech companies become increasingly reliant on Nvidia's chips. Other would-be rival chipmakers are trying to get in the game and build their own GPUs but remain years behind Nvidia's chips, which have become vital in the booming demand for AI. In her letter, Warren accused Nvidia of using anticompetitive tactics that have "choked off competition and chilled innovation," including locking its customers in with compatibility restraints by bundling products, software, and services. Nvidia's stock price has suffered amid a broader market rout this week and reports about the investigation. "Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them," the AI chipmaker said in a statement in response to reports about the DOJ investigation.