Reported 12 months ago
According to a report by Reuters on July 2, 2024, the French Competition Authority may launch an investigation into whether NVIDIA's competitiveness in the artificial intelligence market has led to monopolization. Last year, the French Competition Authority conducted a raid on NVIDIA for allegedly assisting large cloud companies in excluding small-scale cloud service providers, citing unfair competition. The potential investigation into NVIDIA is based on concerns that its use of CUDA technology tied to its GPU products to drive the acceleration of artificial intelligence training may lead to monopolizing the AI market. NVIDIA's GPU products currently hold around 90% of the AI market, prompting regulatory bodies in Europe and the U.S. to monitor its impact on market competition. NVIDIA has not yet responded to these allegations. In a previous investigation, the French Competition Authority concluded that small cloud service providers or latecomers to the market face challenges in competing with dominant players like Amazon, Google, and Microsoft, especially in the current trend of AI application services where smaller players struggle to compete fairly. With many cloud providers relying on GPU acceleration for AI computing, NVIDIA's position as a key supplier has attracted regulatory scrutiny.
Source: YAHOO