Nvidia is facing potential charges from the French antitrust regulator over allegations of anti-competitive behaviour, marking an enforcement agency's first action against the chip giant. The scrutiny follows raids conducted last September in the graphics cards sector, explicitly targeting Nvidia as part of a broader inquiry into cloud computing. The company's prominence in AI and graphics chips, boosted by the popularity of applications like ChatGPT, has drawn regulatory attention in Europe and beyond.

While Nvidia and the French authority declined to comment, the European Commission is unlikely to expand its current review, focusing instead on the French investigation. Concerns highlighted by the French watchdog include Nvidia's CUDA chip programming software, essential for accelerated computing using GPUs, and its investments in AI-centric cloud providers like CoreWeave. These legal developments represent provident measures for potential risks associated with market dependence and competition in the rapidly evolving AI sector.

Why does it matter?

Under French antitrust rules, companies in violation could face fines of up to 10% of their global annual turnover, though concessions can mitigate penalties. Simultaneously, the US Department of Justice is leading an investigation into Nvidia, which is part of the broader scrutiny of Big Tech alongside the Federal Trade Commission. Nvidia's regulatory challenges reflect worldwide scrutiny over its market dominance and strategic expansions in critical technology sectors.