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Nvidia finds itself at odds with the European Union's Digital Markets Act

by on02 July 2024


CUDA be trouble ahead

Nvidia is under scrutiny by the French antitrust regulator for alleged anti-competitive practices. This move marks the first enforcement action against the computer chip giant.

The French authority's "statement of objections" or rap sheet follows dawn raids conducted in the graphics cards sector last September. Sources indicate that these raids specifically targeted Nvidia. The investigation stems from a broader inquiry into cloud computing.

Nvidia's chips have witnessed increased demand, especially after the release of the generative AI application ChatGPT. This surge has triggered regulatory attention on both sides of the Atlantic.

The French watchdog highlights risks of abuse by chip providers. Specifically, it raises concerns about Nvidia's CUDA chip programming software, which remains the sole system fully compatible with GPUs essential for accelerated computing.

Nvidia's recent investments in AI-focused cloud service providers, such as CoreWeave, also raise unease within the sector.

Companies breaching French antitrust rules risk fines of up to 10 per cent of their global annual turnover. However, concessions can mitigate penalties. Meanwhile, the U.S. Department of Justice leads the investigation into Nvidia, sharing Big Tech scrutiny with the Federal Trade Commission.

Last modified on 02 July 2024
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