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AI chips are booming, NVIDIA is targeted by antitrust! France confirms that it is investigating

2024-07-16

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According to Fast Technology on July 16, on July 15, the French Competition Authority confirmed that they are conducting an in-depth investigation into NVIDIA's possible anti-competitive behavior.

Benoit Coeure, chairman of the French Competition Authority, said at a press conference that if the investigation results show that NVIDIA does have problems, the company will be formally charged.

Earlier media reports said that French regulators were preparing to file formal charges against NVIDIA. The investigation stemmed from a search of companies related to the "graphics card industry" in September last year.

Regulators are particularly concerned about NVIDIA's CUDA chip programming software. As programmers become more dependent on CUDA software, regulators are concerned that this may violate the principle of fair competition to some extent.

Separately, French regulators cited the risk of abuse by chip suppliers in a June 28 report on competition in generative AI and expressed concerns about NVIDIA’s market dominance.

As one of the biggest beneficiaries of the generative AI boom, NVIDIA's high share of the AI ​​chip market has attracted the attention of regulators.

The French Finance Minister once pointed out that 92% of the GPU market is occupied by NVIDIA, and this dominance has exacerbated international inequality and stifled fair competition.

Companies that violate French antitrust rules could face fines of up to 10% of their annual global turnover, but they can also avoid fines by making concessions.