Investors may be keeping a closer eye on NVIDIA as the EU opens its own probe into allegations relating to its AI GPU sales. Last Wednesday French authorities raided NVIDIA offices saying the the GPU manufacturer was “suspected of having implemented anticompetitive practices in the graphics cards sector.” Not much else was said regarding the dawn raids but it was enough for the European Commission to begin its own informal probe into allegations regarding potential anti-competitive practices by NVIDIA. According to Bloomberg, the EU has been collecting information on the matter. This early probe by the EU does not indicate guilt but could be the precursor for additional action or a full formal investigation.
Supply and Demand
It is no secret that NVIDIA has made tens of billions in profits this year alone with its A100/H100 GPUs which are highly sought after by the AI industry. As of May, CEO Jensen Huang saw his net worth increase by 98% to $27.3 billion, largely thanks to the demands and publicity of the exploding artificial intelligence industry. From governments to ChatGPT creator OpenAI to Microsoft and even Elon Musk, there are many with deep pockets who are snatching up NVIDIA’s A100/H100 GPUs in large quantities as quickly as they can be shipped. A recent search, at the time of this writing, shows the prices for the aforementioned GPUs range from ~$15,000 to over ~$30,000 each.
Meanwhile, CEO Jensen Huang said earlier this year that NVIDIA saw the demand for technology to support AI coming over a decade ago and the company has focused on reshaping itself for that need ever since. In doing so it has invested billions of dollars in order to be at the forefront of the industry. However, now the question as the EU opens its own probe, along with that by French authorities, is whether NVIDIA has abided by trade laws in the sales practices of its heavily invested technology.