EU Launches Investigation into AI Chip Market Abuse Targeting US Nvidia

Graphic Processing Unit (GPU) Sector Holds 80% Market Share

The European Union (EU) has launched an investigation into anti-competitive abuse in the artificial intelligence (AI) semiconductor market.

NVIDIA Artificial Intelligence (AI) System Semiconductor

On the 29th (local time), Bloomberg News, citing sources familiar with the matter, reported that the EU has recently been informally gathering opinions on potential abuses in the graphics processing unit (GPU) sector to gauge the need for market intervention.

GPUs are considered essential semiconductors for AI services. The U.S. company Nvidia holds about 80% of the market share. According to Bloomberg, regulatory authorities in various countries are closely scrutinizing Nvidia's dominant market position in the AI chip market.

In particular, the French government has been collecting opinions from market players regarding Nvidia's position in the AI market, pricing policies, semiconductor supply shortages, and their resulting impacts. The Wall Street Journal (WSJ) reported the previous day that French competition authorities raided Nvidia's offices on the 26th on suspicion of involvement in anti-competitive behavior in the GPU market.

However, Bloomberg News explained that the EU investigation is still in its early stages, and it is uncertain whether it will lead to a formal investigation or fines. If it is ultimately determined that the company violated EU antitrust laws, it could face fines amounting to up to 10% of its annual revenue.