2024

Meta

Nvidia is hit by a subpoena by the US Department of Justice (DoJ) amid antitrust investigations in various countries. The news comes after Nvidia’s market valuation suffered after disappointing quarterly results.
The company’s stock has plummeted by at least $260 billion in a single day to mark the largest one-day drop.
<h3 id="span-data-preserver-spaces-true-doj-issues-subpoena-to-nvidia-span">DoJ issues subpoena to Nvidia</h3>
The US Department of Justice (DOJ) has issued a subpoena to Nvidia amid its antitrust investigation into AI companies. According to a report by Bloomberg, sources say the DOJ earlier sent out questionnaires to Nvidia as part of its probe. Several AI companies have reportedly received similar subpoenas.
A subpoena is a legal order that asks an entity to provide testimony or documents as part of an investigation. Any failure to comply often results in legal penalties.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” said an Nvidia spokesperson.
<h3 id="span-data-preserver-spaces-true-market-cap-of-magnificent-7-drops-span">Market cap of ‘Magnificent 7’ drops</h3>
Reports indicate that since August, the DoJ has been probing Nvidia for abusing its market dominance. This came after AI chipmakers and some tech competitors accused Nvidia of attempting to monopolize the market. Meanwhile, AI companies are dealing with the double whammy of technological slowdown and regulatory tightening. 
Recently, <a class="editor-rtfLink" href="https://www.cryptopolitan.com/meta-notifies-brazilian-users-about-ai-data/" target="_blank" rel="noopener noreferrer nofollow">Meta Platforms</a> said that it will reveal how it is using the personal data of Brazilians to train generative artificial intelligence (AI). The statement came after the country’s data protection authority demanded the information.
Meanwhile, <a class="editor-rtfLink" href="https://www.reuters.com/legal/nvidia-hit-with-subpoena-us-justice-department-bloomberg-news-reports-2024-09-03/" target="_blank" rel="noopener noreferrer nofollow">Reuters</a> reported last week that Nvidia received information requests from US and South Korean regulators regarding its operations after receiving inquiries from agencies in the EU, UK, and China. On the sidelines of the latest report, Nvidia’s market value took a hit of at least $260 billion in one day.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/search?q=%24NVDA&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$NVDA</a> Fell more than 10 <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$MSTR</a> Market Caps in one day.
 That’s how small <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$MSTR</a> is relative to mega cap tech. <a href="https://t.co/jApY0d5bj9" rel="noopener noreferrer nofollow" target="_blank">https://t.co/jApY0d5bj9</a>
 — Ryan (@ryQuant) <a href="https://twitter.com/ryQuant/status/1831148041740722277?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">September 4, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The drop marks a record one-day fall in Nvidia’s market cap. Meanwhile, social media conversation is speculating if trades were placed before the news that a subpoena was served became public. NVDA’s price initially dropped without any major news, leading to speculations that well-connected insiders had access to this information. 
Nvidia’s Q2 forecast had also hit its market after the chipmaker missed investor expectations. Meanwhile, the broader optimism in the tech market is subdued with the “<a class="editor-rtfLink" href="https://x.com/KobeissiLetter/status/1831043901832171991" target="_blank" rel="noopener noreferrer nofollow">Magnificent 7</a>” stocks cumulatively losing $550 billion in one day. The DoJ has not made any public comments on the reports at press time.

Nvidia’s subpoena from US DoJ pulls it down by $260bn

Table of Contents

Cryptopolitan_News

Other articles published on Sep 4, 2024

MakerDAO Rebrands as 'Sky' and Introduces New Stablecoin USDS

Russia Plans New Crypto Exchanges and Stablecoin Linked to RMB and BRICS Basket

PEPE Coin Faces Significant Market Movements

🗒 Daily Newsletter | Wednesday, September 04, 2024

SHIB, BONK, PEPE: Will the Bearish Momentum Continue?

New Cryptocurrency Releases, Listings, & Presales Today – Moneta, Pika Protocol, fanC

Join our free newsletter for daily crypto updates!