Graphics card producer NVIDIA noticed its two French headquarters, situated in Paris and Good, raided on Tuesday by the Competitors Authority, France’s antitrust watchdog.
The regulator introduced that it had performed “an sudden go to and seizure operation at an organization suspected of implementing anti-competitive practices within the graphics card sector.”
Reviews from native media Challenges later indicated that the corporate in query was NVIDIA, indicating that the operation was licensed by the freedom and detention decide (JLD) and aimed to assemble proof inside the context of suspicions of “anti-competitive practices.”
Traditionally recognized for its graphics playing cards and applied sciences comparable to DLSS, Nvidia has established itself within the cloud sector, notably supplying server GPUs.
As of at the moment, the overwhelming majority of semiconductors used for coaching AI fashions worldwide rely on two corporations: Nvidia for design, and the Taiwanese TSMC for manufacturing.
It is also noteworthy that Nvidia, via its GeForce Now service, performs an important function in cloud gaming, having struck a decade-long take care of Microsoft to characteristic Xbox video games.
The French antitrust watchdog additional clarified that this motion by no means pre-judges the corporate’s guilt concerning the alleged practices.
Reached for remark by Decrypt, NVIDIA refused to remark. The French Competitors Authority didn’t reply instantly.
Nvidia below scrutiny
This shock test is linked to a bigger, months-long probe into how the cloud business works. In June, the French Competitors Authority revealed an investigation into the cloud market.
Throughout a press occasion, its president, Benoît Coeuré, then stated that American corporations like Amazon, Microsoft, and Google “are able to hindering the event of competitors” within the cloud market.
In 2021, the three corporations “would have captured 80% of the expansion in spending on public cloud infrastructure and purposes” in France, that means the complete vary of distant computing providers obtainable to companies.
The Competitors Authority has additionally highlighted challenges within the sector, together with points for corporations wanting to modify suppliers, assessing completely different service prices, and entry boundaries confronted by smaller cloud suppliers.
With the burgeoning development of the synthetic intelligence business, NVIDIA has witnessed a considerable uptick in its revenues.
In response to its most up-to-date monetary assertion, the tech big introduced a income of $13.51 billion in its second fiscal quarter of 2023, marking a 101% surge in comparison with the earlier 12 months.
Highlighting its pivotal function within the improvement of superior instruments like ChatGPT, NVIDIA’s valuation exceeded the $1 trillion benchmark this previous Might.