EU Competition Commissioner Margrethe Vestager warned of a “major bottleneck” in Nvidia Corp. supply of AI chips, but regulators should not yet clear on what, if anything, to do about it.
“We have asked them questions, but this is really only preliminary,” she told Bloomberg during a visit to Singapore. So far, this “would not meet the criteria of a regulatory action.”
Nvidia has attracted regulators’ attention because it became the largest beneficiary of the bogus intelligence spending boom. Its graphics processing units – or GPUs – are prized by data center operators for his or her ability to process the vast amounts of knowledge needed to develop AI models.
The chips have grow to be probably the most sought-after commodities within the technology world, with cloud computing providers competing with one another for access to them. Nvidia’s in-demand H100 processor units are estimated to have helped them grab over 80% market share, outpacing the competition. Intel Corp. And : Advanced Micro Devices Inc. (Company)
Despite the provision shortage, Vestager said secondary markets for the provision of AI chips could help stimulate innovation and fair competition.
However, it warned that market-dominant corporations could face certain restrictions on their behaviour in the longer term.
“When you have such a dominant position in the market, you can’t do things that a small company can do,” she said. “But other than that, as long as you run your business and respect it, everything’s fine.”
