Semiconductor giant Nvidia (NVDA) is at the center of new antitrust concerns after receiving subpoenas from the U.S. Department of Justice (DOJ), according to a report by Bloomberg. The subpoenas are tied to potential violations of monopoly and antitrust rules.

Bill Baer, ​​former Assistant Attorney General of the Antitrust Division, joins Catalysts to discuss this latest development.

Baer notes that there is no clear clarity on the Justice Department’s intentions with these subpoenas, but there is speculation that “Nvidia may be trying to force users of its processors… to make Nvidia an exclusive supplier and charge higher prices to those customers who buy chips from multiple companies.” However, he cautions that a subpoena is just one of the first steps and that this investigation will take a significant amount of time, stating, “This is not a matter of weeks, it’s a matter of months.”

Explaining the broader impact, Baer says, “One of the things the Federal Trade Commission and the antitrust division are trying to do is get ahead of the curve. Figure out where a market might be leaning toward a monopoly and intervene earlier. They’re certainly trying to do that in the AI ​​space.”

Click here to watch the full episode of Catalysts for more expert insights and the latest market activity.

This post was written by Angel Smith