Nvidia, the giant of artificial intelligence chips, is facing antitrust charges from French regulators, making France the first country to prosecute the dominant company in the AI chip sector.
France’s Competition Authority is preparing a “statement of objections” or charges against Nvidia, following dawn raids in the graphics card sector in September 2023. These actions mark the beginning of a significant legal process against the company.
The French regulator has expressed concerns about the sector’s dependence on Nvidia’s CUDA chip programming software, which is 100% compatible with GPUs essential for accelerated computing. This dependence could be limiting competition and strengthening Nvidia’s dominance in the market.
Companies that violate antitrust rules in France face fines of up to 10% of their global annual turnover. However, companies can offer concessions to avoid these penalties, which could be a strategy that Nvidia considers to mitigate financial risks.
Nvidia’s dominant position in the market and its closed ecosystem are attracting intense antitrust scrutiny globally. France’s charges could be just the beginning of a series of legal challenges as regulators seek to control Nvidia’s power in the AI chip market.
The situation in France could serve as a precedent for other countries, as regulators around the world closely watch Nvidia’s business practices. This case underscores the growing concern over Nvidia’s control over a crucial sector for future technological development and fair competition in the global market.