In a significant escalation of the ongoing antitrust probe, the Department of Justice is honing in on Nvidia's dominance in the field of artificial intelligence (AI) hardware, according to reports from Bloomberg. As the primary hardware provider in the AI industry, Nvidia, along with other companies, has received legally binding requests for information as regulators investigate allegations that the company is impeding competition by creating barriers for customers to switch suppliers and penalizing buyers who do not exclusively use its AI chips.

Nvidia, which had recently overtaken Microsoft to become the world's most valuable company earlier this summer, now finds itself trailing behind both Microsoft and Apple. The news of the subpoenas, reported on Tuesday afternoon, dealt a heavy blow to Nvidia's stock price, causing it to plummet by over 9 percent. In a single day, the company lost approximately $279 billion in market value. Despite this setback, Bloomberg points out that Nvidia's stock remains more than double what it was at the beginning of the year, fueled by the flourishing demand for its expensive AI chips.

Earlier this year, Nvidia faced additional hurdles as reports from The Information indicated potential delays in the release of its highly anticipated Blackwell series of AI chips. Citing design flaws, the report suggested that the chips could be postponed by at least three months or more. However, this setback did not hinder the overall momentum of the company's robust sales, buoyed by the AI boom.

The antitrust investigation, focused on Nvidia's alleged anti-competitive practices, highlights growing concerns about the company's dominant market position in the AI hardware sector. As AI technology becomes increasingly vital across various industries, regulators are scrutinizing whether Nvidia's actions prevent fair competition and limit customer choices.

Nvidia, known for its powerful graphics processing units (GPUs) that are widely used in AI applications and data centers, has enjoyed substantial success and acclaim in recent years. However, the investigation poses a significant challenge to the company's stronghold in the market and its future growth prospects.

As the antitrust probe continues, Nvidia and other implicated companies are required to cooperate fully with regulators and provide the requested information to assist in the investigation. The outcome of this investigation will have far-reaching implications for Nvidia's future trajectory and the competitive dynamics within the AI hardware industry as a whole.