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Report: Nvidia Target of French Antitrust Charges

Jul 01, 2024 - pymnts.com
Nvidia, the chipmaker, is reportedly facing antitrust charges in France, following a raid on its offices last year. The French competition authority's charges come as Nvidia experiences increased demand for its chips used in AI applications, leading to increased scrutiny from global regulators. The company has previously disclosed that the EU, China, and France have sought information on its graphic cards. The French authority is particularly concerned about the sector's reliance on Nvidia’s CUDA chip programming software, which is fully compatible with GPUs crucial for accelerated computing.

Nvidia has also been under scrutiny for its proposed acquisition of British chip designer Arm. Despite these challenges, the company has seen its market capitalization rise, competing closely with Microsoft and Apple for the title of the world's most valuable company. CEO Jensen Huang has stated that the company has transformed from a gaming-focused firm to a data center-focused one, and is working to create new markets for its AI. Huang also highlighted Nvidia's market share of over 80% in AI chips.

Key takeaways:

  • Nvidia is reportedly facing antitrust charges in France, following a raid on its offices last year.
  • The French competition authority's charges come amidst increased scrutiny of Nvidia's dominance in the AI chip market.
  • Nvidia has disclosed that the European Union, China, and France have sought information on its graphic cards, but the European Commission is unlikely to expand its review for now.
  • CEO Jensen Huang has stated that Nvidia is working to maintain its dominant position in the AI field, with a market share of over 80% in AI chips.
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