Nvidia Corporation has refuted claims that it has been subpoenaed by the Department of Justice in relation to its dominant position within the artificial intelligence chip sector.

The chip manufacturer issued a statement on Wednesday asserting that it has not received any subpoena, expressing its willingness to engage with regulators regarding any inquiries about its business operations.

This announcement follows reports from Tuesday indicating that Nvidia was under scrutiny as antitrust officials sought evidence to determine if the company had breached competition laws. A subpoena would typically require Nvidia to provide requested information legally.

Bloomberg reported that Nvidia had indeed received a civil investigative demand, which functions similarly to a subpoena.

A spokesperson for Nvidia stated, “Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them.”

Furthermore, the spokesperson added, “We have inquired with the US Department of Justice and have not been subpoenaed.”

Nvidia leads the market for chips designed to enhance generative AI capabilities, supplying over 40,000 companies, including major players like Microsoft, Meta, Tesla, and Alphabet, all of whom seek to achieve exceptional computing speeds.

Recently, the DOJ has reportedly questioned technology companies about Nvidia’s business methods, focusing particularly on hardware bundling practices.

On Tuesday, Nvidia experienced a significant decline in its stock price, resulting in a loss of $279 billion in market capitalisation, marking the largest single-day drop in market value for a US company. The stock fell another 1.7 percent to $106.21 on Wednesday but showed recovery in after-hours trading, rising by 0.6 percent to $106.80.

Founded in 1993 and headquartered in Santa Clara, California, Nvidia has secured its position as a frontrunner in the competitive landscape of chips for generative AI, supplying various sectors looking for high-speed computation.

According to Jon Peddie Research, Nvidia commanded 88 percent of the GPU market share in the first quarter, an increase from 84 percent the previous year.

At one point in June, Nvidia held the title of the world’s most valuable public company, peaking at a $3.35 trillion valuation, though it has since decreased to $2.65 trillion, now trailing behind Microsoft and Apple.

The Department of Justice has not provided any comments regarding the situation.