The investigation comes after Nvidia reported record revenues, largely driven by major tech companies like Microsoft and Amazon purchasing its high-end processors for generative AI language models. The French competition authority's report did not specifically name Nvidia, but highlighted the need for competition regulators to ensure that established players do not hinder the growth of smaller or new players. The report also noted that the raids do not presuppose any legal breach by the company involved. Nvidia has not yet responded to requests for comment.
Key takeaways:
- French authorities have reportedly raided Nvidia’s local offices to investigate suspected anti-competitive practices, based on a report by the Autorité de la concurrence.
- The company, one of the top suppliers of artificial intelligence chips, has seen a significant increase in revenue due to the rise of generative AI, with its valuation reaching $1 trillion in June.
- The Autorité de la concurrence's report suggests that established players in the cloud services market could potentially hinder the development of smaller or new players, but does not specifically list Nvidia.
- This is not the first time French authorities have taken action against big tech companies, with Apple's iPhone 12 sales being suspended in September due to high radiation levels.