Justice Department Drops Probe of Nvidia, ATI

A federal investigation begun in 2006 into possible anti-trust violations by graphics chip makers Nvidia and ATI Technologies was formally closed last Friday, according to the two companies.

Nvidia, headquartered in Santa Clara, Calif., and ATI, now owned by Sunnyvale, Calif.-based Advanced Micro Devices, acknowledged that they had received subpoenas from the U.S. Department of Justice (DOJ) on Dec. 1, 2006. Nearly two years later, the DOJ has closed its probe into the companies' pricing and marketing practices in the sale of graphics processing units (GPUs), statements by the two companies said.

"There were no specific allegations made against [Nvidia] during the investigation," an Nvidia spokesperson said Monday. Nvidia's Ken Brown confirmed Friday's receipt of the DOJ notice that the case had been closed.

AMD on Monday also announced that it had been informed Friday that DOJ's investigation was over.

The closing of the anti-trust case represents more good ATI-related news for the financially struggling chip maker.

Last week, AMD announced it would be spinning off its manufacturing assets to form a separate, minority-owned semiconductor fabrication company. That move has been greeted positively by investors and partners, largely because it promises to ease a good chunk of the debt incurred by AMD that is tied to its acquisition of ATI on Oct. 25, 2006.