French competition regulators set to sue Nvidia for alleged anti-competitive practices

According to reports from Reuters on Monday, French antitrust authorities are preparing to accuse NVIDIA (NVDA) of alleged anti-competitive practices.

The newspaper, citing people with direct knowledge of the matter, reported that the French regulator would be the first to do so.

The French statement of opposition, also known as the charge sheet, would come after the recent raids on the graphics card sector in September last year. According to Reuters, its sources said the raids were aimed at Nvidia (NASDAQ:), the world’s largest maker of chips for artificial intelligence and computer graphics.

The company has seen a surge in demand for its chips following the release of generative AI applications, primarily ChatGPT, late last year.

Its shares have followed suit, rising more than 192% in the past 12 months. At the time of writing on Monday, Nvidia shares were down 1.4% from Friday’s close.

However, the emergence of GenAI has also led to increased regulatory scrutiny in the US and Europe.