Chip maker Nvidia to face antitrust charges French antitrust authority files lawsuit

Nvidia is likely to be charged by the French antitrust regulator for alleged anti-competitive practices. According to a Reuters report, people close to the matter said the regulator is the first enforcement body to take action against the chipmaker. The statement of opposition, or charge sheet, would follow raids in the graphics card sector in September 2023, which sources said targeted Nvidia. The raids were the result of a broader investigation into cloud computing.

The world’s largest maker of chips, which are used for both artificial intelligence and computer graphics, has seen a surge in interest in its chips after the launch of its generative AI app ChatGPT. It has also sparked regulatory scrutiny on both sides of the Atlantic.

READ ALSO | BGIS 2024 Grand Final: The ‘Undergods’ Come Out on Top to Give the Big Dogs a Stiff Challenge

Interest in Nvidia chips is growing

The French regulator, which selectively discloses its concerns to companies, and Nvidia declined to comment, Reuters reported. Nvidia disclosed in a regulatory filing last year that authorities in the European Union, China and France had requested information about its graphics cards. Sources familiar with the situation said the European Commission is unlikely to expand its initial review at this point because the French regulator is conducting its own investigation into Nvidia.

In a recent report on competition in generative AI, the French watchdog raised concerns about potential abuses by chip suppliers. It raised questions in particular about the industry’s reliance on Nvidia’s CUDA chip programming software, which is the only system fully compatible with GPUs, which are key to accelerated processing. The watchdog also expressed concern about Nvidia’s recent investments in AI-focused cloud providers such as CoreWeave.

Violating French antitrust laws can result in fines of up to 10 percent of a company’s global annual turnover, although companies can offer concessions to avoid penalties. Meanwhile, the U.S. Department of Justice is investigating Nvidia, alongside the Federal Trade Commission, as part of a broader scrutiny of big tech companies, according to a source briefed on the matter.