Nvidia Chief Executive Jensen Huang’s net worth fell by about $10 billion on Tuesday as shares of the AI chip leader tumbled nearly 10% amid a global selloff.
Huang, the 61-year-old Taiwanese-born executive who cleaned bathrooms and worked as a busboy at Denny’s before co-founding Nvidia more than 30 years ago, saw his fortune shrink to $94.9 billion, according to the Bloomberg Billionaires Index.
His fortune, which has grown by $51 billion this year alone, fell after the biggest one-day loss in Nvidia’s history, wiping nearly $280 billion off its market capitalization.
As of Tuesday, Nvidia’s market cap was $2.6 trillion, putting it behind Apple ($3.35 trillion) and Microsoft ($3.02 trillion).
Shares of Nvidia fell after Bloomberg News reported that the Justice Department served the company with a subpoena as part of its ongoing investigation into alleged antitrust violations.
The Santa Clara, Calif.-based company, which is known for its demanding workplace culture where employees work up to seven days a week and sometimes until 1 or 2 a.m., allegedly has customers armed with penalized if they did not buy their chips exclusively.
The investigation is looking into whether Nvidia charges its customers more for networking equipment if they want to buy AI chips from rivals such as Advanced Micro Devices (AMD) and Intel.
Intel shares fell nearly 9% after Reuters reported that CEO Pat Gelsinger and top executives are expected to present a plan to the company’s board of directors to shed redundant businesses and renew capital spending at the struggling chip maker.
The DOJ is taking the lead in the Nvidia investigation as the agency splits its review of Big Tech with the Federal Trade Commission, according to Reuters.
The FTC is headed by Lina Khan, whose aggressive antitrust crackdowns on big business have prompted some industry titans like media mogul Barry Diller and tech billionaire Reid Hoffman to call for Vice President Kamala Harris to oust her if she wins the White House. . in the year 2024.
Nvidia, whose chips are used for both artificial intelligence and computer graphics, has seen a surge in demand for its products following the release of its AI-generating app ChatGPT.
But the company’s business practices have prompted regulators in the US as well as Europe to scrutinize alleged monopolistic behavior.
The European Union, France and China have all requested information from Nvidia about its graphics cards.
Government regulators have been wary of Nvidia’s market dominance, which is based on the company’s reliance on CUDA chip programming software – the only system that is 100% compatible with the graphics processing units (GPUs) that power games, create of content, AI and scientific research.
The Post has sought comment from Nvidia.
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