Nvidia is in conflict with the EU Digital Markets Act

MIRACLES could be a problem

Nvidia is under scrutiny by France’s antitrust regulator for alleged anti-competitive practices, a move that marks the first enforcement action against the computer chip giant.

The French regulator’s “statement of objection,” or list of charges, stems from dawn raids carried out in the graphics card sector last September. Sources indicate that the raids specifically targeted Nvidia. The investigation stems from a broader investigation into cloud computing.

Nvidia’s chips have seen a surge in demand, especially after the release of its generative AI app ChatGPT, which has drawn scrutiny from regulators on both sides of the Atlantic.

The French watchdog is highlighting the risk of abuse by chip suppliers. In particular, it is raising concerns about Nvidia’s CUDA chip programming software, which remains the only system fully compatible with the graphics processors needed for accelerated processing.

Nvidia’s recent investments in AI-focused cloud providers like CoreWeave are also raising concerns in the sector.

Companies that violate French antitrust laws risk fines of up to 10 percent of their global annual turnover. But concessions can soften the penalties. Meanwhile, the U.S. Justice Department is investigating Nvidia, sharing Big Tech’s control with the Federal Trade Commission.