The European Commission (EC) reportedly opened an early stage probe into alleged anti-competitive behaviour in the AI chip market, a segment currently dominated by Nvidia.
Bloomberg reported the EC is analysing potential anti-competitive practices in the market of GPUs, which are used to train large language models and other AI software alongside gaming.
The probe so far involves informally collecting views on alleged abuse, which will be used to decide on the need for future intervention.
A formal investigation could result in a company found guilty of violations facing penalties of as much as 10 per cent of global annual revenue and an order to change business models.
Nvidia has been a major beneficiary [1] of the generative AI boom, stating demand for AI-capable silicon was a factor for a 101 per cent year-on-year rise in revenue to $13.5 billion in its fiscal Q2 2024 (ending 30 July).
It forecast revenue of $16 billion in its next quarter.
The company is, however, now seemingly starting to gain attention from regulators.
Along with EC, Bloomberg reported French authorities also started to interview market players about Nvidia, focusing on its pricing policy.
French competition authorities last week raided Nvidia offices over claims of anti-competitive practices in the graphics card sector, The Wall Street Journal reported.
[1] https://www.mobileworldlive.com/featured-content/top-three/ai-feeding-frenzy-fuels-nvidia/
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