07:08 AM EDT, 09/04/2024 (MT Newswires) -- (Updates to add stock movement in last paragraph.)

Nvidia ( NVDA ) is staring down the barrel of a federal investigation as an antitrust probe into its dominant position in the artificial intelligence business intensifies, Bloomberg reported Tuesday, citing people familiar with the matter.

The US Department of Justice sent subpoena for additional information from Nvidia ( NVDA ), according to Bloomberg. The department previously sent letters to the chipmaker and other companies seeking information.

The subpoenas, however, signal continued efforts by the agency to determine whether Nvidia ( NVDA ) is using its market influence to keep potential competitors from gaining a foothold in the AI realm.

In a statement to MT Newswires, a Nvidia ( NVDA ) spokesperson denied any unlawful activity, but did not directly address whether the company has received a subpoena.

"Nvidia ( NVDA ) wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them," the spokesperson said.

The DOJ did not immediately respond to a request for information.

Shares of the company were down 1.8% in recent Wednesday premarket activity. The stock fell 9.5% on Tuesday's close.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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