French Competition Authority Conducts Surprise Raid on Nvidia France Office

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The Autorité de la concurrence, the French Competition Authority, conducted a surprise raid at Nvidia's French premises, prompted by suspicions of anticompetitive conduct within the graphics card industry. The identity of the specific company under scrutiny during the raid was not disclosed by the French Competition Authority.

 However, it was solely referred to as a participant in the graphics card sector. Sources with knowledge of the situation, as detailed by The Wall Street Journal (WSJ), strongly indicate that Nvidia was the primary target. This action was carried out following the acquisition of judicial authorization by the French antitrust agency.

The French Competition Authority underscored in its report that dawn raids such as this do not inherently imply the presence of legal violations attributable to the implicated company regarding the alleged practices. Only an extensive examination of the case's merits can ascertain any potential wrongdoing.

Dawn raids typically entail authorities arriving early in the morning to seize physical and digital assets from the company under investigation while also conducting interviews with its personnel. This specific raid formed part of a broader operation initiated in June, focusing on the competitive landscape within the cloud computing market.

Nvidia has benefited substantially from the surge in AI adoption, partly driven by technologies like ChatGPT. Consequently, Nvidia's premium AI chips, including the H100 (Hopper), have witnessed significant demand. Nvidia's recent financial results have demonstrated a noteworthy increase, with the company reporting $13.5 billion in revenue—an impressive 101% year-over-year improvement. This has reinforced Nvidia's position as a prominent fabless chip designer globally.

Nvidia has opted not to issue a statement regarding this matter reports bloomberg.

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