Nvidia could face 10% annual revenue penalty from French antitrust charges

Welcome back to Power Lunch. NVIDIA is just the latest big tech company to attract the attention of European regulators. Deirdre Bosa looking at that in today's tech Check Deirdre. Hey Kelly. So Nvidia's rise to not just the largest chip maker in the world, but largest tech company by market cap. For a brief point, it was bound to attract some regulatory attention. It has Reuters reporting the French antitrust authority is set to charge NVIDIA for anti competitive practices. And they're not the only ones. In a regulatory filing last year, NVIDIA said regulators in the EU and China had also asked for information on its graphic cards. Now, like the broader EUDMA, which has already targeted Apple, Microsoft, Meta, NVIDIA could face as much as 10% of its global annual revenue for breaching rules. And here's the bottom line. NVIDIA has become so successful, so dominant in the AI arms race that is no longer just a chip company that makes GPU's. It is an ecosystem where it's hardware works best on its CUDA software, which are increasingly served by its own cloud infrastructure. It's also investing in smaller companies like Core, Weave and others that in turn expand the NVIDIA ecosystem around its products. Now regulators are trying to figure out if that's fair competition or self dealing, letting incumbents, the big players leverage their market power resources inside information to. Gain unfair advantages or stifle competition. It'll be interesting to see how this now plays out in Europe. Guys. John Kelly, you well know that the European regulators have been more aggressive, tougher than their American counterparts. Mostly they've been regulating foreign companies are big tech companies. But there are some interesting startups in the Gen. AI world coming out of Europe, like a Mistral that comes out of France. All right, Deirdre, thanks. Not much of A cliffhanger whether European regulators are going to regulate or not.