Nvidia offices raided by French authorities in anti-trust investigation

nme.com:

Nvidia‘s offices were raided by the French authorities as part of a larger investigation into anti-trust allegations in the cloud computing sector.The Wall Street Journal (via GamesIndustry.biz) reported that the French Competition Authority was motivated to mobilise the local police as a result of its responsibilities to ensure fair free enterprise.“Large language models (LLM, such as ChatGPT), edge computing, cloud gaming, cybersecurity issues or the growing importance of its environmental footprint can be mentioned, among others,” said the regulator in a report from June about potential threats to this industry.“Competition authorities will have to monitor that established players do not hinder the development of smaller or new players based on these technologies,” it continued.Though it specifically named Amazon Web Services, Microsoft Azure and Google Cloud as the three “hyperscalers” here, Nvidia’s products are widespread throughout the cloud computing sector.In the summer, the company was valued at $1trillion thanks to the rising demand for artificial intelligence chips for gaming, data centres, visualisation and modelling and the automotive and robotics industries.However, Nvidia was the third most under-owned stock in actively managed portfolios as of the end of the second quarter of 2023 in a selection of 15 technology and growth stocks.

This is due to the price of the stocks and some residual concerns over the direction that artificial intelligence will take in the future.“You have seen this stock driven up so far, so fast,” said Tallbacken Capital Advisors CEO Michael Purves in analysis provided to Reuters.