EU Competition Chief Flags Nvidia AI Chip Supply Issue, Regulatory Response Unclear
EU competition chief Margrethe Vestager has highlighted a significant bottleneck in the supply of Nvidia Corp.’s AI chips but indicated that regulatory intervention is not yet determined. During a recent trip to Singapore, Vestager spoke with Bloomberg about the ongoing situation, noting that while inquiries are being made, they remain preliminary and do not currently meet the criteria for regulatory action.
“We’ve been asking them questions, but that is really preliminary,” Vestager told Bloomberg. She added that the Nvidia situation “would not” so far “tick the box of being regulatory action” from the EU.
Nvidia, a key player in the artificial intelligence sector, has drawn considerable attention from regulators following its emergence as a primary beneficiary of the AI spending surge. The company’s graphics processing units (GPUs) are highly sought after by data center operators for their capability to process the vast amounts of data required for developing AI models. Nvidia’s H100 processing units, in particular, have become one of the most coveted items in the tech industry, with cloud computing providers vying for access.
Related: Nvidia Faces Global Regulatory Scrutiny Amid Antitrust Investigations
Estimates suggest that Nvidia has secured a market share of over 80%, outpacing rivals such as Intel Corp. and Advanced Micro Devices Inc. This dominant position has raised concerns among regulators about potential impacts on competition and innovation within the AI chip market.
Vestager acknowledged the challenges posed by Nvidia’s dominance but suggested that secondary markets could stimulate innovation and ensure fair competition in the EU. However, she also warned that companies with significant market power might face restrictions on their behavior to maintain competitive fairness.
“If you have that kind of dominant position in the marketplace, there are things that you cannot do that a small company can do,” Vestager said. “But other than that, as long as you do your business and are respecting that, you’re good.”
As the situation evolves, the EU’s approach to Nvidia’s market position will be closely watched by industry stakeholders and competitors alike.
Source: Bloomberg
Featured News
Mexico Moves Forward with Reform to Eliminate Key Regulators, Including Competition Watchdog
Aug 23, 2024 by
CPI
DOJ Sues RealPage for Alleged Rent-Fixing Scheme Using AI Software
Aug 23, 2024 by
CPI
Advance Auto Parts to Offload Worldpac for $1.5 Billion
Aug 22, 2024 by
CPI
Bronfman Ups Ante to $6 Billion in Paramount Battle, Skydance Deal at Risk
Aug 22, 2024 by
CPI
Google and California Strike Historic Deal to Fund Newsrooms Amid Controversy
Aug 22, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich