Akash Network, FET, and Render see double-digit losses as Nvidia stocks plunge 9.5%

AI-focused cryptocurrencies suffered double-digit losses after Nvidia suffered its biggest daily drop in market value due to an antitrust subpoena from the U.S. Department of Justice.

AI chip giant Nvidia experienced a significant decline on September 4, with its stock falling 9.53%, from an opening price of $116.02 to $108. This drastic drop led to a $270 billion drop in the company’s market value, from $2.92 trillion to $2.65 trillion, making it the largest single-day market value loss ever reported for any U.S. company.

Also after the market closed, Bloomberg reported that Nvidia had been subpoenaed by the U.S. Department of Justice as part of an antitrust investigation. Nvidia’s stock continued to fall in after-hours trading, according to Google Finance.

Antitrust authorities are concerned that Nvidia could restrict customers from switching to rival companies and fine those that do not use only its own AI chips.

Following the DOJ’s investigation into Nvidia, Akash Network (AKT) is down 11%, from a daily high of $2.4 to $2.15, the day’s low. Similarly, Bittensor (TAO), Render Token (RNDR), and Artificial Superintelligence Alliance (FET) are also down more than 10% at press time before recouping some of their losses.

According to CoinGecko, on September 4, the market value of all AI tokens dropped by over 6.9%, while trading volume fell to $1 billion.

While Nvidia’s stock is down today, it has seen a significant increase of over 118% by 2024, bringing its market value to over $2.65 trillion and making it the third largest company in the world.

Analysts had predicted Nvidia’s second-quarter revenue would reach $28.6 billion.

Nvidia’s strong revenue performance and positive forward guidance suggest a promising outlook for the AI ​​crypto industry, potentially boosting prices of related assets. However, results that fall short of estimates often trigger a significant market correction.

Akash Network and Render are partnering with Nvidia because they operate at the intersection of the blockchain and semiconductor industries. The partnership enables the deployment of GPU rendering solutions on the blockchain network. According to Akash Network’s website, Nvidia’s H100 GPU, which typically retails for over $30,000, can be rented for less than $1 per hour.

Similarly, Bittensor offers a decentralized platform for developing machine intelligence solutions following a distributed model similar to the Akash Network.

Additionally, the Artificial Superintelligence Alliance, which includes initiatives such as Fetch.ai, SingularityNET, and Ocean Protocol, also intersects with Nvidia’s commercial interests. The partnership complements Nvidia’s work in the semiconductor and AI sectors by focusing on accelerating the development of decentralized artificial general intelligence and, ultimately, artificial superintelligence.