For the first time, French competition authorities—who oversee the competition in the nation known for its love of cheese—have announced that Nvidia is being investigated for possible anti-competitive behaviour.
The leader in artificial intelligence (AI) might be charged if the investigation reveals that it engaged in anti-competitive behaviour, according to the Autorité de la concurrence.
This announcement comes after a Reuters story from earlier this month that suggested Nvidia will probably face charges from the French antitrust authorities, citing unnamed sources.
The demand for Nvidia’s chips, which are widely used in computer graphics and artificial intelligence (AI), has increased significantly since the release of ChatGPT, an application that uses generative AI.
European and American regulators are paying closer attention as a result of this increase.
The price of Nvidia’s shares may suffer if the corporation is charged.
However, the market doesn’t appear to be overly concerned about this development just yet.
On the fringes of a news conference, Agency President Benoit Coeure said Reuters that Nvidia might face legal action if its probe “was fruitful.”
This statement falls under the category of “things that are obvious,” according to experts.
Although Reuters claims that the inquiry is connected to events in the cloud computing sector, it is unclear what accusations may be brought against Nvidia.
Newsng gathered that the NVIDIA stock was down when the markets began today, but it has since turned around and is gradually rising.
Even if the probe’s news is still trending, shares have recovered despite some turbulence and could go into the green by market close.
Although this Nvidia inquiry is undoubtedly bad news, the market for Nvidia’s products won’t disappear even if the company is judged to have engaged in anti-competitive behaviour.
We earlier reported that Nvidia is entering the Middle East and North Africa with its recent partnership with Ooredoo, the largest telecom company in Qatar.
