French Regulators Intensify Probe into Nvidia's AI Market Practices; Charges Loom
July 1, 2024French antitrust regulators are intensifying their investigation into Nvidia's alleged anti-competitive practices in the AI compute space.
Charges are expected to be brought against Nvidia by the Autorité de la concurrence.
This scrutiny follows a raid on Nvidia's French offices and concerns raised by the country's competition watchdog.
Broader investigations are also being conducted by the European Union and the US Department of Justice.
Nvidia's dominance in the AI infrastructure market is being closely monitored, with competition from rivals like AMD, Intel, and Cerebras.
If found guilty, Nvidia faces potential penalties of up to 10% of its annual global revenue.
The company is also dealing with regulatory challenges in the United States, including seeking an export license for the Middle East and FTC monitoring following a blocked merger with Arm.
These regulatory developments have caused Nvidia's stock to slightly drop.
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