(CTN News) – There was a raid conducted on Nvidia’s (NVDA.O) local offices this week by France’s competition authority on suspicion that the chipmaker engaged in anticompetitive practices, according to a Wall Street Journal report published on Thursday.
In announcing the dawn raid on Wednesday, the French competition authority failed to say what practices it was investigating, or which company it had targeted, other than to say it was in the “graphics card sector” of the economy.
According to the French competition authority, its investigation into the cloud computing sector took place as part of a broader investigation.
As part of the general inquiry, concerns have been raised about whether cloud-computing companies may use their access to computing power to exclude smaller competitors in the market.
This week’s raid had targeted Nvidia,
Which is the world’s largest maker of chips used for computer graphics and artificial intelligence, as well as for artificial intelligence, the WSJ reported, citing people familiar with the raid as sources.
It has long been known that chips meant for computer graphics are well suited to computers that involve artificial intelligence.
In response to Reuters’ request for comment, Nvidia has not yet responded to Reuters’ request for a comment, and the French competition authority has not yet responded to Reuters’ request for a comment.
After the release of Nvidia’s ChatGPT generative AI application late last year, there was a surge in the demand for Nvidia’s chips.
Using a combination of its chips and other hardware, as well as the highly sophisticated software that runs them, Nvidia has been able to achieve a market share of around 80% in recent years.
As a result of the aggressive approach taken by the French authorities against Big Tech in recent months.
The French government suspended sales of Apple’s (AAPL.O) iPhone 12 in September after it found the phone emitted radiation levels above a safety threshold, and threatened to recall it.
Due to the move, Apple had to release a software update for the French market in response to the move.