EU intensifies investigation into Nvidia's potential anti-competitive practices in AI chip market.

From Nasdaq: 2024-12-06 12:46:56

Nvidia, the leader in AI chips, is under EU antitrust scrutiny for potential bundling practices. The European Commission is investigating if Nvidia requires customers to buy additional networking equipment with its GPUs. Nvidia denies wrongdoing, but faces global regulatory pressure. EU violations could lead to fines of up to 10% of global revenue.

Regulators are concerned about Nvidia’s market dominance and potential tying of products. The company controls 84% of the AI chip market, far ahead of rivals like Intel and AMD. Investigations in France, the US, UK, and South Korea add to the scrutiny. Nvidia emphasizes customer choice and open industry standards to defend its practices.

The intense regulatory focus on Nvidia’s AI dominance highlights the challenges of balancing market leadership with fair competition. Rivals like AMD and Intel could benefit from increased oversight, reshaping the AI chip market dynamics. Nvidia must navigate regulatory hurdles while maintaining its position in the fast-growing AI sector.



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