On the past Wednesday, French antitrust authorities raided a specialized GPU company, identified as NVIDIA, according to reports from The Wall Street Journal and Challenges. The competition authority stated that “this company is suspected of using anti-competitive practices in the GPU market.” This probe is linked to a previous investigation concerning the cloud computing market, specifically focusing on identifying if newer companies were being unfairly squeezed out by larger incumbents. The main contenders in this space are Amazon Web Services, Google Cloud, and Microsoft Azure.
Part of the findings indicate that “the chances for new market players to gain a significant market share rapidly are limited, considering the other digital giants already present.” However, the investigation did not mention NVIDIA in relation to the cloud system.
In the current year, NVIDIA has achieved tremendous financial success amidst the booming AI trend, surpassing revenue predictions by generating $13.51 billion in the second quarter of 2023, compared to $6.7 billion in 2022. Analysts anticipate that NVIDIA’s AI chip market share will reach up to 90% in the future.
It should be noted that the observations made by the French competition authority do not imply wrongdoing on the part of NVIDIA in terms of anti-competitive practices. Rather, they are steps taken to ascertain regulatory compliance.
TLDR: Recently, French authorities conducted a raid on NVIDIA, a prominent GPU company, due to suspicions of anti-competitive behavior in the GPU market. The investigation is connected to an earlier inquiry into the dominance of major players in the cloud computing sector. Although NVIDIA’s name was not mentioned in relation to the cloud system, the company has been achieving remarkable financial success in the AI field, exceeding revenue expectations. The findings from the competition authority’s probe underscore the challenges faced by new market entrants, yet it does not directly implicate NVIDIA in any wrongdoing.