The U.S. Justice Department has escalated its investigation into Nvidia Corp. by issuing subpoenas to the chipmaker and other companies, seeking evidence of potential antitrust violations.

The DOJ is examining whether Nvidia’s practices, such as making it difficult to switch suppliers and penalizing non-exclusive buyers, breach antitrust laws.

This move follows previous inquiries and signals a step closer to formal charges. Nvidia’s stock, which has surged this year due to strong AI sales, fell after news of the subpoenas.

The investigation also scrutinizes Nvidia’s acquisition of RunAI and its market practices, Bloomberg has reported.

Nvidia maintains that its market position is due to product quality and customer choice.

Written by B.C. Begley