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Regulators Scrutinize Nvidia’s Graphic Cards Amid Growing Demand and AI Chip Delays

 |  November 26, 2023

In a recent regulatory filing, Nvidia, the leading U.S. chip giant, revealed that regulators from the European Union, China, and France have requested information about the company’s graphic cards. The inquiries are part of a broader investigation into Nvidia’s sales practices and supply allocation strategies, with additional requests anticipated in the future.

Nvidia, renowned as the world’s largest producer of chips for both artificial intelligence and computer graphics, has experienced a surge in demand for its products. The company’s chips gained widespread attention and utilization following the release of the generative AI application ChatGPT in the latter part of the previous year.

The regulatory scrutiny has intensified, with French authorities taking a more assertive approach. In September, the French watchdog conducted a raid on Nvidia’s local office, as disclosed by an insider familiar with the matter.

“We have also received requests for information from regulators in the European Union and China regarding our sales of GPUs and our efforts to allocate supply, and we expect to receive additional requests for information in the future,” Nvidia stated in the regulatory filing.

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The investigations are likely to focus on Nvidia’s sales practices, market dominance, and the allocation of its in-demand graphics processing units (GPUs). As the demand for GPUs continues to rise, regulators are keen to ensure fair competition and prevent any anti-competitive behavior in the market.

Simultaneously, Nvidia is facing challenges in the development and launch of a new AI chip specifically designed for the Chinese market. According to two sources familiar with the matter, the release of the China-focused AI chip has been delayed. The reasons for the delay were not explicitly mentioned, but it adds another layer of complexity to Nvidia’s current regulatory and operational landscape.

Source: Reuters