EU regulators are cracking down on Big Tech

European antitrust regulators are keeping a close eye on Big Tech, and their latest target is Nvidia.

The AI darling is in trouble with French antitrust regulators as they gear up to charge the $3 trillion chipmaker for alleged anticompetitive behavior, Reuters reported this week. The Authority is investigating Nvidia’s monopoly in the artificial intelligence market, focusing on its AI processors, pricing policies and chip shortages.

The French regulator is particularly alarmed by Nvidia’s commanding 85% market position, driven by its CUDA chip programming software used by over 90% of AI developers. 

Additionally, Nvidia’s recent investments in AI-centric cloud service providers like CoreWeave, resulting in a 300% increase in their GPU use, have also raised regulatory eyebrows.

Following the release of the generative AI application ChatGP, demand for Nvidia’s chips spiked by 50%, drawing scrutiny in Europe and the US.

Last September, French authorities raided local offices owned by the company as part of a broader investigation into cloud computing practices.

Nvidia’s success in the AI boom is clear: Its valuation soared from $1 trillion in May 2023 to $3 trillion by June 2024. Concurrently, the company is also under investigation by the Department of Justice (DOJ) and the Federal Trade Commission (FTC).

EU regulators have been accusing other tech companies as well.
The regulatory scrutiny of Nvidia aligns with broader actions against Meta, Apple, and Microsoft in Europe; the tech giants have been accused of violating the Digital Markets Act. The moves mark a concerted effort to ensure fair competition and consumer protection in the tech industry.

If found guilty, regulators could fine them each 10% of their global revenue.

Due to regulatory scrutiny, Google, Meta and Apple have not yet launched their AI products on the continent.