French Competition Authority raids NVIDIA local offices in major investigation.

French authorities have conducted a raid on Nvidia's offices in France as part of an investigation into potential anticompetitive practices in the graphics cards sector.

The raid highlights the growing scrutiny on Nvidia's dominant position in supplying chips for artificial intelligence applications.
Nvidia's H100 processors currently hold a significant market share, with estimates suggesting they capture over 80% of the market.
The raid does not imply any wrongdoing on Nvidia's part, but rather serves as part of the investigative process to thoroughly examine the case.

French authorities have conducted a RAID on nVidia’s offices in France as part of an investigation into potential anticompetitive practices in the Graphics Cards sector. While Nvidia has not commented on the matter, this move highlights the growing scrutiny on the company’s dominant position in supplying chips for artificial intelligence applications. Initially known for their popularity in gaming, Nvidia’s graphics processor units have now become crucial components in AI systems used for training large language models and other AI software.

The raid was authorized by a judge following a report by the French competition authority on competition within the cloud computing sector. Nvidia’s H100 processors currently hold a significant market share, with estimates suggesting they capture over 80% of the market. This news comes as two French companies have recently announced plans to expand their products of Nvidia’s powerful AI chips, the H100s.

It is important to note that the raid does not imply any wrongdoing on Nvidia’s part, but rather serves as part of the investigative process to thoroughly examine the case. The Autorité de la concurrence, France’s competition authority, has stated that they will not provide further comments on the matter at this time.

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Background Information

About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

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Technology Explained

RAID: RAID (Redundant Array of Independent Disks) is a technology used in the computer industry to increase the performance, reliability, and storage capacity of computer systems. It works by combining multiple hard drives into a single logical unit, allowing them to be accessed as if they were a single drive. This allows for faster data access, as multiple drives can be accessed simultaneously, and for increased reliability, as data can be stored redundantly across multiple drives. RAID is commonly used in servers, workstations, and other high-performance computing systems, as well as in consumer-level storage solutions such as NAS (Network Attached Storage) devices.