EU Antitrust Regulators Declare No Need for Formal Investigation Into Nvidia AI Chips – News18
Last Updated: October 02, 2023, 16:04 IST
Nvidia had declined to comment following the French raid.
EU antitrust regulators have not opened a formal investigation into chips used for artificial intelligence, the European Commission said on Monday, days after the French competition authority raided Nvidia for alleged anticompetitive practices.
EU antitrust regulators have not opened a formal investigation into chips used for artificial intelligence, the European Commission said on Monday, days after the French competition authority raided Nvidia for alleged anti-competitive practices.
“There is no formal investigation by the Commission into the matter you refer to,” a spokesperson for the EU executive said in an email to Reuters when asked about the issue.
Nvidia had declined to comment following the French raid.
Bloomberg News last week said the EU antitrust watchdog was informally collecting views on potentially abusive practices in the market for graphics process units.
Nvidia makes graphics processing units (GPUs), chips that break down a computer task into smaller pieces and processes them together, making it faster than traditional methods.
The GPUs are highly sought by technology companies for their data centers, by video game console makers and even by bitcoin miners to solve the complex math puzzles and earn more cryptocurrencies.
Nvidia has a near-monopoly of the GPU market with 84% market share, leagues ahead of rivals Intel (INTC.O) and AMD (AMD.O). With a market valuation of $1 trillion, Nvidia is also becoming crucial to fast-developing artificial intelligence (AI) technology.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
EU antitrust regulators have confirmed that they will not be opening a formal investigation into the use of chips for artificial intelligence by Nvidia. This news comes shortly after the French competition authority conducted a raid on Nvidia for alleged anticompetitive practices.
According to a spokesperson for the European Commission, there is currently no formal investigation into this matter. Nvidia has not provided any comments following the raid conducted by the French competition authority.
It was reported last week by Bloomberg News that the EU antitrust watchdog is informally gathering opinions on potentially abusive practices in the market for graphics process units. Nvidia is a leading manufacturer of graphics processing units (GPUs), which are used to break down computer tasks into smaller pieces and process them together, resulting in faster processing speeds compared to traditional methods.
These GPUs are highly sought after by technology companies for their data centers, as well as by video game console makers and bitcoin miners who utilize the GPUs to solve complex mathematical problems and earn cryptocurrencies. With a dominant market share of 84%, Nvidia holds a near-monopoly in the GPU market, surpassing rivals Intel and AMD. Additionally, Nvidia’s market valuation of $1 trillion highlights its increasing significance in the rapidly advancing field of artificial intelligence technology.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
Perspective: Nvidia’s dominance in the GPU market raises concerns about potential anticompetitive practices. While EU regulators have not initiated a formal investigation, it is crucial for authorities to monitor market dynamics to ensure fair competition and protect consumers. The widespread use of Nvidia’s AI chips in various industries highlights the growing influence of AI technology and emphasizes the need for transparency and accountability in this sector.
