Nvidia AI chips are a ‘huge bottleneck’ but that will not imply regulatory motion, EU suggests



European Union competition main Margrethe Vestager warned of a “huge bottleneck” in Nvidia Corp. AI chips provide, but stated watchdogs are nonetheless building up their minds about what, if everything, to do about it. 

“We’ve been asking them concerns, but that is genuinely preliminary,” she informed Bloomberg throughout a vacation to Singapore. That “would not” so considerably “tick the box of becoming regulatory action.”

Nvidia has drawn the interest of regulators due to the fact getting to be the major beneficiary of the artificial intelligence paying out increase. Its graphics processing models — or GPUs —  are prized by data middle operators for their means to crunch the substantial sum of information and facts needed to create AI products. 

The chips have turn out to be 1 of the hottest commodities in the tech earth, with cloud computing providers competing with a person yet another to get obtain to them. Nvidia’s in need H100 processing models have helped them gain a current market share of higher than 80%, in accordance to estimates, forward of rivals Intel Corp. and Advanced Micro Devices Inc. 

Irrespective of the provide squeeze, Vestager explained that secondary marketplaces in the source of AI chips could aid to spark innovation and reasonable opposition.

But she explained businesses that are dominant could face specific limitations on their conduct in the future. 

“If you have that kind of dominant placement in the market, there are points that you are unable to do that a tiny corporation can do,” she explained. “But other than that, as prolonged as you do your business enterprise and are respecting that, you’re good.”

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