HomeWinBuzzer NewsFrench Regulators Target Nvidia for Alleged Anti-Competitive Practices

French Regulators Target Nvidia for Alleged Anti-Competitive Practices

As Nvidia enjoys growing dominance in the AI chip sector, French regulators are raising concerns about anti-competitive practices.

-

is currently facing allegations of anti-competitive conduct from French antitrust authorities, according to individuals with knowledge of the matter. According to Reuters, the incident represents the first regulatory engagement of this kind against the company.

Investigation Origins

The investigation's roots can be traced back to surprise inspections of Nvidia's offices last September. These inspections were part of a larger probe into the industry, particularly focusing on .

The surge in demand for Nvidia's chips, following the release of ChatGPT, has led to greater regulatory scrutiny. Both European and U.S. regulators have shown interest, with French authorities spearheading the investigation.

Industry Dominance Concerns

A recent report from the French antitrust body raised flags about possible monopolistic behavior by chip manufacturers in the AI sector. The report highlighted the industry's dependence on Nvidia's CUDA software, which is uniquely compatible with the required GPUs for high-speed computing.

Nvidia's AI Investments Scrutinized

French regulators are also worried about Nvidia's strategic investments in AI-centric cloud services like CoreWeave. These investments are perceived as efforts to consolidate Nvidia's stronghold in the AI market.

Violations of French antitrust laws can result in fines up to 10% of a company's global yearly revenue. Companies can, however, propose remedies to mitigate such penalties. Nvidia has not issued a statement regarding the investigation.

While French authorities are actively looking into Nvidia, the European Commission is not expected to expand its current review. The U.S. Department of Justice is also investigating Nvidia, working in tandem with the Federal Trade Commission.

Nvidia maintains an 80% share in the AI chip sector, according to CNBC. Huang remarked that the company's extensive customer network enables continual innovation and growth, creating a positive feedback loop in the industry.

SourceReuters
Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.
Mastodon