Explainer-Why is France raiding a graphics card company?

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A raid by French authorities of the offices of a technology firm named as Nvidia in media reports is the latest among a string of such actions by European regulators as they look to check the dominance of Big Tech companies from thwarting competition. The French competition authority conducted the dawn raid on Wednesday on a company in the 'graphics cards sector', it said. French newspaper Challenges and the Wall Street Journal identified the company as Nvidia.

STOCKHOLM - A raid by French authorities of the offices of a technology firm named as Nvidia in media reports is the latest among a string of such actions by European regulators as they look to check the dominance of Big Tech companies from thwarting competition.

The GPUs are highly sought by technology companies for their data centres, by video game console makers and even by bitcoin miners to solve the complex math puzzles and earn more cryptocurrencies. While GPU prices start from over $1,000, the ones favored by AI companies can cost well over $10,000. Specialized AI systems from Nvidia such as DGX A100 start at $199,000, or the price of four Tesla Model 3s.WHY IS FRANCE INTERESTED?

Nvidia has a presence in both sectors, and if any startup is planning to create an AI company, they would need to depend on Nvidia for the chips.

 

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