Report: Nvidia Target of French Antitrust Charges

Core Viewpoint - Nvidia is facing potential antitrust charges in France, following increased scrutiny from global regulators due to its dominant position in the AI chip market [1][2]. Group 1: Antitrust Concerns - The French competition authority is preparing to charge Nvidia with antitrust violations after a raid on its offices last year [1]. - Nvidia disclosed in a 2023 regulatory filing that it has been approached by the European Union, China, and France for information regarding its graphic cards [1]. - A recent report from France's watchdog highlighted concerns about the risk of abuse by chip companies in the generative AI sector [2]. Group 2: Market Position and Strategy - Nvidia has transformed from a gaming-focused company to a data center-focused one, capitalizing on the demand for AI applications [3]. - The company has achieved a market share of over 80% in AI chips, indicating its strong position in the industry [3]. - CEO Jensen Huang mentioned that Nvidia is collaborating with computer makers and cloud providers to create new markets for its AI products, emphasizing the value of its chips in terms of performance and operating costs [3]. Group 3: Competitive Landscape - Nvidia is in close competition with Microsoft and Apple for the title of the world's most valuable company, with all three companies experiencing significant market capitalization growth amid the AI boom [2]. - The company has established a "virtuous circle" where its growing customer base allows it to develop products that attract even more customers, enhancing the overall value of its platform [3].