Graphics chip giant Nvidia is set to face antitrust charges in France, according to sources with knowledge of the situation. This marks the first time a regulatory agency has taken such action against the company.
The French competition authority will reportedly issue a “statement of objections” following raids conducted last September that targeted Nvidia within the graphics card sector. These searches stemmed from a broader investigation into cloud computing services.
Nvidia, the world’s leading manufacturer of chips for artificial intelligence and computer graphics, has experienced a surge in demand for its products due to the rise of generative AI applications like ChatGPT. This success has attracted increased scrutiny from regulators worldwide.
Both the French regulator and Nvidia declined to comment on the matter.
However, in a regulatory filing made last year, Nvidia acknowledged information requests from regulators in the EU, China, and France concerning its graphics cards.
The French competition authority recently issued a report on competition in generative AI, highlighting the potential for anti-competitive practices by chip suppliers. The report expressed concern about the industry’s reliance on Nvidia’s CUDA chip programming software, the only fully compatible system for the GPUs that are essential for accelerated computing.
Additionally, the report raised concerns about Nvidia’s recent investments in AI-focused cloud service providers like CoreWeave.
Companies found to be in violation of French antitrust laws can face fines of up to 10% of their global annual turnover. However, they also have the option of offering concessions to avoid penalties.
The lead investigator in the US is reportedly the Department of Justice, due to its shared control over big tech with the Federal Trade Commission.
