Parradee Kietsirikul
Nvidia (NASDAQ:NVDA) will likely face charges by French antitrust regulators for alleged anti-competitive practices, according to a breaking news report by Reuters on Monday morning.
“The French so-called statement of objections or charge sheet would follow dawn raids in the graphics cards sector in September last year, which sources said targeted Nvidia,” the report said.
Last September, French antitrust regulators raided chip giant Nvidia’s offices in the country over suspected anti-competitive practices.
The regulator, Autorité de la concurrence, said it conducted “a dawn raid at the offices of a company suspected of engaging in anticompetitive practices in the graphics cards sector.”
“Such dawn raids do not presuppose a breach of the law that could be imputed to the company, which only a full investigation into the merits of the case could establish,” it added.
Nvidia controls between 70% to 95% of the market share for AI chips used in training larger language models such as OpenAI’s GPT, according to Mizuho Securties.
Nvidia had 98% of market share in data center GPU shipments in 2023, according to a study by TechInsights.
Nvidia has surged over the past year to boast the third-highest market cap valuation in the world at $3.04T, trailing only Microsoft (MSFT) at $3.4T and Apple’s (AAPL) $3.35T.