Nvidia, the US-based chipmaker for artificial intelligence (AI) and computer graphics, is on the verge of facing charges from the French antitrust regulator over alleged anti-competitive practices, reported Reuters.  

This development follows dawn raids in the graphics cards sector in September 2023, which notably targeted Nvidia, the sources said.  

The raids were part of a wider investigation into the cloud computing industry.  

Nvidia’s demand has surged following the release of the generative AI application ChatGPT, leading to increased regulatory scrutiny in various regions, including both the US and Europe.  

The French authority and Nvidia have opted not to comment on the matter, the publication said.  

In 2023, Nvidia in a regulatory filing, acknowledged that it had been requested to provide information on its graphic cards by regulators in the European Union, China, and France. 

Sources indicate that the European Commission currently does not plan to extend its initial review, given that the French regulator is already scrutinizing Nvidia’s practices. 

Recently, the French watchdog released a report on competition in generative AI, highlighting potential abuse by chip providers.  

The report expressed concerns about the industry’s reliance on Nvidia’s CUDA chip programming software, which is the only fully compatible system with the graphics processing units critical for accelerated computing. 

The report also raised questions about Nvidia’s recent investments in AI-focused cloud service providers, such as CoreWeave.  

Companies found in breach of French antitrust rules could face fines up to 10% of their global annual turnover.  

However, they have the option to offer concessions to avoid such penalties.  

In the US, the Department of Justice is leading the investigation into Nvidia, as it coordinates Big Tech scrutiny efforts with the Federal Trade Commission, according to a source familiar with the situation.