French Authorities Raid Nvidia Offices in Antitrust Investigation Amid Rising AI Chip Demand

2023-09-30 09:08:20

The French offices of Nvidia, the leading manufacturer of artificial intelligence chips, were recently raided by local authorities. The action came as part of a general investigation by French antitrust authorities into the cloud computing industry. The incident was reported by the Wall Street Journal on Thursday, however, neither the local authorities nor the company concerned confirmed the news. In a press release published on the website of the French antitrust authority, the Autorité de la Concurrence, we can read about an unannounced investigation in the graphics card sector. At first it was not clear which company was the target of the raid, the French competition authority only said that it was the graphics card sector. It was later revealed that the company involved was Nvidia, and a judge authorized the raid on the grounds that the company engaged in anti-competitive practices in its industry. In a report published in June, the French competition authority said the growing use of artificial intelligence will drive demand for cloud-based services. They added that competition regulators must therefore ensure that existing players do not impede the development of smaller or new entrants. Due to the unprecedented rise of artificial intelligence, the demand for Nvidia’s chips has increased significantly. As a result, the company’s sales skyrocketed, pushing its value above $1 trillion at the beginning of the year. As for Nvidia shares, at the time of writing, they were trading at $434.99. Over the past five days, they have gained 4.59%, but are down 11.87% in one month, according to Google Finance. As the company’s shares remain resilient in the market, it is clear that the raid has not yet exerted significant selling pressure. The lack of accusations is unlikely to change investor sentiment for the time being. The situation may change depending on the outcome of the investigations.
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