French Competition Authority Investigates Nvidia Office Raid Over Anticompetitive Practices in Graphics Cards Sector
French competition authorities have conducted a raid on the local offices of Nvidia, the world’s leading chipmaker, suspecting the company to be involved in anticompetitive practices. The raid took place following a broader investigation into the cloud-computing sector, as authorities have been concerned about the potential for larger cloud-computing companies to use their computing power advantage to exclude smaller competitors.
While the French competition authority did not disclose specific details about the practices being investigated, it did confirm that the focus was on the graphics cards sector. Nvidia, known for manufacturing chips used in artificial intelligence and computer graphics, is the target of the raid. The company’s chips, originally designed for computer graphics, are also well-suited for AI-related computing.
Nvidia has seen a surge in demand for its chips, particularly after the release of the generative AI application called ChatGPT. With a combination of powerful hardware, software, and high-performance chips, Nvidia has captured a significant market share of around 80%.
French authorities have recently taken an aggressive stance against major tech companies. In a notable incident, France suspended sales of Apple’s iPhone 12 and threatened a recall due to concerns about radiation levels exceeding limits. This prompted Apple to release a software update specifically for the French market, addressing the issue.
At the time of reporting, Nvidia shares were up by 1.4% at $430.65, reflecting the ongoing developments related to the investigation.
While Nvidia has declined to comment on the raid, it remains to be seen how this investigation will unfold and whether any anticompetitive practices will be identified and addressed. The outcome of this probe could have implications for both the company and the broader graphics cards sector.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or professional advice.
