What is the significance of the Justice Department issuing subpoenas to India, but also their peers in industry? Yeah. Thanks for having me today. So the procedure here is that the DOJ is getting more serious about their investigation. They're looking to hear from Nvidia about their sales practices, about their industry. And they're probably looking at their peers, not because their peers are in trouble, but more because they want to hear about their experience in competing with and buying from Nvidia. And this is all, you know, a ramp-up to a potential lawsuit, I think, is the idea behind these subpoenas. Can you go into precedence, Rebecca, of making it hard to switch suppliers or perhaps pushing customers for exclusive deals? Is that just part of the course of doing business if you've got someone wanting to remain with you vertically, or is that ever deemed anti-competitive? It can be deemed anti-competitive.

Excuse me. You know, this is not that different from some of the accusations in the Microsoft case, which is one of the biggest antitrust cases of the last 20 years, 25 years. Some of the ideas behind this, the theory of this case, which, of course, we don't really know what the theory of this case is, but some of the ideas behind this, the complaints so far have been similar to those from Microsoft. Exclusive dealing was the problem in the Google case that Google just lost. So these things can be anti-competitive. The question is, are they undertaken by a monopolist? So plenty of things that you do that are perfectly fine if you're not a monopolist become unlawful if you're a monopolist. And then the other question is, are they instead providing some value to their consumers? Is there some pro-competitive reason to

provide your goods in this way? Rebecca, I wondered if I might ask you a somewhat, I guess, academic question or indeed a policy question that Nvidia would tell you. They are America's darling. They're an American company. They follow American laws and they are putting America first in terms of their leadership of an industry. Why would the Justice Department go after them in that respect? Yeah. So why would we kill our golden goose? You know, like. Exactly. So, yeah. So part of the point here is that we're not trying to kill anything. We are trying to make this market, which is obviously crucial for the air race. It's crucial for America's sort of, you know, financial world leader status. We're trying to make it competitive because competitive markets work best. And, you know, there's this precedent even just a couple of years ago for the agencies going after India for doing something they perceived as anti-competitive and they stopped it.

This was an acquisition from 2022, and Nvidia went on to do all that. It's done over the last two years. I think that's the idea. It's that we want, we can't expect companies to self-regulate. We want them to be innovative. We want them to work hard. And yes, we love the success that Nvidia has had, go out and do more, but we have to create a competitive environment for those incentives to work properly. And I'm sure AMD and Intel would love to feel that they couldn't be an also-ran a little bit more than they're currently deemed by the market. But Rebecca, when this sort of policy action, if we do get a formal investigation at the moment, we understand it's just subpoenas, it's just the groundwork. If something does occur, how much of a distraction does it end up being for businesses? At the moment, we have a problem of demand outstripping supply.

So that's true. And, you know, the legal stuff is definitely a distraction. It's something that Metta and Google have been used to for much longer. They have larger infrastructure, larger sets of lawyers than video does. So, you know, there is a cost to this, and there's the uncertainty, and there's the what happened to the market. You know, this regulation, this sort of enforcement is not totally costless. At the same time, it's really the payoff, I think, is really significant. And I think they're not being enough chips out there is part of the problem. So what we want is a competitive market because that maximizes output, that creates the most chips for the most people. And so that is actually what's at stake here. You know, nobody is going to say no. If you come after us. That means even fewer chips for the market. But I don't think it's a zero-sum game.

Why the DOJ Is Investigating Nvidia

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