EU concerned about “bottleneck” in Nvidia chip supplies
- July 10, 2024
- 0
The European Union is concerned about the shortage of GPUs. It is not yet clear whether further measures will be taken against Nvidia. During an official visit to
The European Union is concerned about the shortage of GPUs. It is not yet clear whether further measures will be taken against Nvidia. During an official visit to
The European Union is concerned about the shortage of GPUs. It is not yet clear whether further measures will be taken against Nvidia.
During an official visit to Singapore, EU Commissioner Margrethe Vestager spoke about the situation at Nvidia, Bloomberg reports. Vestager expressed concerns about a “major bottleneck” in GPU supply and demand, which would result in many companies having to wait a long time for their orders. Nvidia’s dominant market position does not help, as there is no other party that can supply equivalent hardware for AI models.
The European Commission has been monitoring Nvidia for some time and has conducted a preliminary survey. According to Vestager, nothing has emerged that requires further investigation. However, there was also a clear warning to Nvidia:
“When you have such a dominant position in the market, there are things you can’t do that a small company can do. But as long as you do your business and respect that, you’ll be fine,” Vestager said.
It was inevitable that Nvidia would sooner or later be targeted by regulators. Any company that wants to do something with AI seems to be unable to get past Nvidia sooner or later. In addition to hardware, the company also has a lot of say at the software level with CUDA. Nvidia has been experiencing a steep rise since the beginning of 2023,
France is already further ahead in its case against Nvidia than the European Commission. Following a raid late last year, the French market authority recently brought a quasi-formal charge against Nvidia, whose position in the AI industry has become too big in the authority’s view. The European Commission could therefore first examine what is happening in France before launching its own investigation.
Source: IT Daily
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