French Regulators Investigate Nvidia for Anti-Competitive Practices

The French competition authority has confirmed an ongoing investigation into Nvidia, the leading global chipmaker, over alleged anti-competitive practices. Benoit Coeure, president of the French competition authority, announced on Monday during a press briefing that the company could face charges if the investigation yields substantial evidence.

This announcement follows a report from Reuters earlier this month, which, citing anonymous sources, indicated that Nvidia was likely to be charged by the French antitrust regulator. Nvidia, renowned for its chips utilized in artificial intelligence (AI) and computer graphics, has experienced a surge in demand since the launch of the generative AI application ChatGPT. This surge has prompted regulatory scrutiny in both Europe and the United States.

In a regulatory filing last year, Nvidia disclosed that regulators from the European Union, China and France had requested information regarding its graphic cards. The French watchdog, in a report issued last month concerning competition in the generative AI sector, highlighted the potential for abuse by chip providers. The report expressed particular concern about the industry’s reliance on Nvidia’s CUDA chip programming software, the sole system fully compatible with the GPUs essential for accelerated computing.

Furthermore, the French competition authority expressed unease about Nvidia’s recent investments in AI-focused cloud service providers such as CoreWeave. These investments have raised questions about potential market dominance and the fairness of competition within the rapidly expanding AI industry.

The outcome of this investigation could have significant implications for Nvidia and the broader tech industry, particularly in the burgeoning field of AI. As regulatory bodies on both sides of the Atlantic continue to scrutinize the practices of major tech companies, the findings of the French competition authority will be closely watched.

Source: Reuters