Bloomberg News, citing sources familiar with the matter, has reported that the European Union is examining alleged anti-competitive practices in the used electronic chip market for artificial intelligence, a market dominated by Nvidia.
The report stated that the European Commission is informally gathering opinions on potential abusive practices in the graphics processing unit (GPU) sector to determine whether future intervention is necessary.
The investigation is in its early stages and may not necessarily lead to formal inquiries or penalties.
Nvidia, the leading player in the GPU market, has not commented on Bloomberg News’ report.
The report also mentioned that French authorities have conducted interviews with market representatives regarding Nvidia’s prominent role in AI chips, its pricing policies, chip shortages, and their impact on prices.
It was noted that the French competition authority raided the offices of a company operating in the “graphics card sector,” which sources identified as Nvidia.
Nvidia manufactures graphics processing units, chips that divide a computer’s tasks into smaller parts and process them together, making them faster than traditional methods.
Graphics processing units are in high demand from technology companies for their data centers, video game platform manufacturers, and even cryptocurrency miners to solve complex mathematical puzzles and earn more cryptocurrencies.
Nvidia virtually monopolizes the GPU market with a market share of up to 84%, surpassing its competitors Intel and AMD, with a market capitalization exceeding a trillion dollars, Nvidia has also become a key player in rapidly evolving artificial intelligence technology.
