(Reuters) – The European Union is investigating potential anticompetitive abuses in the market for chips used in artificial intelligence (AI), which is currently dominated by Nvidia, according to sources familiar with the matter, as reported by Bloomberg News on Friday.
The European Commission is gathering feedback on possible abusive practices in the sector for graphics processing units (GPUs), which are not only used for AI purposes but also for gaming. This information is being gathered in an informal manner to determine if there is a need for future intervention, the report stated.
Nvidia declined to comment on the matter, while the European Commission has not yet responded to a request for comment from Reuters.
This investigation follows similar actions taken by French authorities, who have been conducting interviews with market participants regarding Nvidia’s dominant role in the AI chip market, its pricing policies, the chip shortage, and its impact on prices, according to the report.
In fact, just this week, France’s competition authority conducted a raid on Nvidia’s local offices based on suspicions that the chipmaker was involved in anticompetitive practices. This information was reported by the Wall Street Journal on Thursday.
Reported by Chavi Mehta in Bengaluru, the article does not provide any further details. It is unknown when the investigation will be concluded or if any actions will be taken as a result.
It is worth noting that Nvidia has been a dominant player in the AI chip market, with its GPUs being widely used in various industries for AI-related applications. The company’s products have gained popularity due to their high performance and efficiency.
However, concerns over potential anticompetitive behavior have been growing, prompting authorities to take action. The investigations by both the European Union and French authorities will likely shed light on whether Nvidia’s market dominance has led to unfair practices or hindered competition in the AI chip market.
As the investigation progresses, it will be interesting to see the potential impact it may have on Nvidia’s market position and reputation. Additionally, the outcomes of these investigations could have broader implications for the AI industry as a whole, as it continues to expand and evolve.
Overall, the reported investigations highlight the increased scrutiny faced by dominant players in the tech industry, particularly in markets critical to emerging technologies such as artificial intelligence.
Credit: The Star : Tech Feed
