Chipmaker Nvidia is said to be charged with antitrust violations in France.
The pending charges by the French competition authority will follow a raid on Nvidia’s offices last year, Reuters reported Monday (July 1), citing sources familiar with the matter.
Nvidia has seen its fortunes boom in recent months thanks to demand for its chips, used for artificial intelligence (AI) applications. But as Reuters noted, that has drawn scrutiny from regulators Around the world.
An Nvidia spokesperson declined to comment when reached by PYMNTS.
The company, the Reuters report said, disclosed in a 2023 regulatory filing that the European Union, China AND France had requested information about its graphics cards.
Sources tell Reuters that the European Commission is unlikely to widen its review for now, as the French authority is looking into Nvidia. France’s watchdog issued a report last week on competition in the AI ​​generation field and cited the risk of abuse by chip companies.
That report, Reuters said, included concerns about the sector’s dependency of Nvidia CUDA chip programming software, the only system that is totally in line with GPUs that have become crucial for accelerated computing.
Last year’s raid was part of one wider investigation in the cloud computing industry. Nvidia has also struggled review in Europe on the proposed acquisition of British chip designer Arm.
As mentioned here recently, Nvidia has been in close competition with it Microsoft AND Apple for the world title most valuable company. These companies, such as Nvidia, have seen their market capitalization rise amid a wave of investor interest that has led to an AI boom.
Last week, the company held a meeting of shareholders in which the CEO Jensen Huang Nvidia said THERE took several steps to maintain its dominant position in the field of HE.
Huang told investors that the firm has already “transformed” from a gaming-focused company to a data center-focused company.
He added that Nvidia is working with computer manufacturers and cloud providers to create new markets for its AI.; AND is offering chips whose performance and running costs make them a better value than others that may be cheaper to buy.
Beyond that, Huang said Nvidia has achieved a “virtuous circle” in which the number of customers she has it allows him to build products that attract even more customers.
“The Nvidia platform is widely available through every major cloud provider and PC manufacturer, creating a large and attractive install base for developers and customers, which makes our platform more valuable to our customers,” said Huang.
His comments were reported by CNBC, which noted that Nvidia has a market share of more than 80% in AI chips.
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