Home AI News European Investigation Puts Nvidia’s AI Chip Dominance under the Spotlight

European Investigation Puts Nvidia’s AI Chip Dominance under the Spotlight

European Investigation Puts Nvidia’s AI Chip Dominance under the Spotlight

The Dominance of Nvidia Under Investigation in Europe

The popular GPU maker, Nvidia, is currently facing scrutiny in Europe over its dominance in the AI chip market. The French antitrust authorities have conducted searches at Nvidia’s French office to determine if the company has been engaging in illegal monopolistic practices.

The French Competition Authority (FCA) confirmed the searches at certain graphics chip manufacturers’ offices to investigate signs of monopolistic behavior. Although the FCA didn’t disclose the company under investigation, sources have confirmed that Nvidia is the subject. During the search, French authorities seized physical and digital documents and interviewed Nvidia’s staff. However, Nvidia has chosen not to comment on the matter.

In addition, the European Competition Commission is reportedly having informal discussions with industry stakeholders to assess if Nvidia has been manipulating the AI chip market, particularly in the enterprise and gaming sectors. Nvidia’s A100 and H100 chips currently hold 80% of the AI chip market, making it increasingly challenging for traditional CPU giants like Intel and AMD to keep up. If the EU’s investigations prove monopolistic behavior, Nvidia could face a hefty fine of billions of dollars.

The rise in the popularity of AI has greatly benefited Nvidia. The company’s stock price has soared, and its quarterly revenue reached an impressive $13.51 billion, marking a 101% year-on-year growth. With a market capitalization exceeding a trillion dollars, Nvidia’s success is undeniable. However, with such power comes great scrutiny, and the outcome of the European investigation remains to be seen.

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– [WSJ](https://www.wsj.com/tech/ai/nvidias-french-offices-raided-in-cloud-computing-competition-inquiry-97c094ea)
– [Economic Times](https://economictimes.indiatimes.com/tech/technology/eu-starts-early-stage-probe-into-nvidia-dominated-ai-chip-markets-abuses-report/articleshow/104050352.cms?from=mdr)
– [Benzinga](https://www.benzinga.com/government/23/10/35022895/eu-eyes-nvidia-scrutiny-intensifies-over-ai-chip-market-dominance)
– [Reuters](https://www.reuters.com/technology/eu-starts-early-stage-probe-into-nvidia-dominated-ai-chip-market-abuses-2023-09-29/)
– [Bloomberg](https://www.bloomberg.com/news/articles/2023-09-29/eu-begins-early-stage-probe-into-ai-chip-market-abuses-that-nvidia-dominates)

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