It has been reported that French regulatory authorities are preparing to bring "antitrust" charges against Nvidia, alleging unfair competition practices. Nvidia has become a major supplier of GPUs and high-speed networking equipment, which are essential for the training clusters needed to develop and service top AI models. Some estimates place Nvidia's share of the AI infrastructure market at over 80%, which seems to have stirred up dissatisfaction within France's antitrust department.
According to the first report by Reuters, these charges were brought following a surprise raid on Nvidia's French office last September, as part of a broader investigation into the cloud computing industry, which found that some U.S. companies might be impeding competition in the region.
It is still unclear what specific charges the French regulatory authorities will formally bring against Nvidia. However, a report released by the country's competition regulatory agency last week specifically mentioned the potential issues with Nvidia.
Besides France, the European Union is also investigating Nvidia's market dominance to determine if corrective measures are needed. Meanwhile, the U.S. Department of Justice is reportedly preparing to investigate whether Nvidia has crossed into the monopolistic domain.
Despite Nvidia's control over a large portion of the AI infrastructure market today, it faces competition from rivals, notably AMD's MI300 series GPUs and APUs, Intel's Gaudi3 accelerators, and Cerebras' wafer-scale training chips.
Key Points:
🔸French regulators are preparing to file antitrust charges against Nvidia, claiming unfair competition.
🔸The European Union and the U.S. Department of Justice are also investigating Nvidia's market dominance to determine if corrective actions are required.
🔸Although Nvidia currently controls a major share of the AI infrastructure market, it faces competition from competitors.