A global first: French antitrust agency prepares to take action against Nvidia

On July 2, with the popularity of generative AI, Nvidia, the world's largest AI and computer GPU chip manufacturer, has almost become an unshakable leader, which has also attracted the attention of regulators on both sides of the Atlantic.

Reuters reported that chip giant Nvidia has been accused by French antitrust regulators of alleged anti-competitive behavior, which would make it the first law enforcement agency to take action against Nvidia. Another person familiar with the matter revealed that the U.S. Department of Justice is also leading the investigation into Nvidia as it shares its review of large technology companies with the Federal Trade Commission.

Sources said the charges stem from a raid in France on the graphics card industry last September, and that the raid was part of a broader investigation into the cloud computing sector.

Nvidia declined to comment, but the company mentioned in a regulatory filing last year that regulators in the European Union, China and France had requested information about its graphics cards.

Other people familiar with the matter said the European Commission is unlikely to expand its preliminary review for now because French authorities are investigating Nvidia.

In a report on generative AI competition released last Friday, French regulators explicitly mentioned the risk of chip suppliers abusing their market dominance, expressed concerns about the AI ​​industry's over-reliance on Nvidia's CUDA, and expressed uneasiness about Nvidia's recent investment in AI cloud service providers (such as CoreWeave).

Under the rules, Nvidia could be fined up to 10% of its global annual turnover if it violates French antitrust regulations, but the company can also make concessions to avoid penalties.