News EU Investigates GPU Market Abuse in Wake of Nvidia Office Raid

[Admin]

Following police raid in Nvidia's police office, EU starts investigating AI processor market.

EU Investigates GPU Market Abuse in Wake of Nvidia Office Raid : Read more

 

[bourgeoisdude]

But...what did they do wrong? Get there first? Are they just too successful? I don't see any specific charges here.

 

[TerryLaze]

Following police raid in Nvidia's police office, EU starts investigating AI processor market.

EU Investigates GPU Market Abuse in Wake of Nvidia Office Raid : Read more

Man, nvidia has their own police office?! They are bigger than we thought...

 

[spongiemaster]

Man, nvidia has their own police office?! They are bigger than we thought...

You think Nvidia didn't see what the EU did to Intel and Microsoft? You didn't need one of Nvidia's AI supercomputers to predict this was going to happen.

 

[Kamen Rider Blade]

It took them long enough!

They should've investigated nVIDIA years ago.

 

[TerryLaze]

You think Nvidia didn't see what the EU did to Intel and Microsoft? You didn't need one of Nvidia's AI supercomputers to predict this was going to happen.

Huh?! I just found it funny that the OP had the mistake in it making it seem as if nvidia has a police office.

 

[Sluggotg]

I remember when some European Countries made Microsoft include everyone else's Web Browsers in with Windows because it was "unfair" that it only included Explorer. The Governments said the average person was not capable of buying or downloading, then installing the software. ( Installing software is kind of a thing in the computer world).

A lot of successful companies get extorted by governments. Especially if it is a foreign company.

 

[hotaru251]

what did they do wrong?

i mean nearly everyone would say they are being way too greedy since pandemic .

not related to the reason probably but nobody wants a monopoly for anything.

Its very bad in everything as that gives said entity basically 100% control of it.

 

[thisisaname]

Does this count as a fishing expedition?

 

[Dantte]

Remember when the government fined a company for "unfair" practices, then turned around and gave the money back to the people who were "unfairly" treated??? Oh wait, thats not how this works...

Heres how it really works, government fines companies, takes the money and our elected officials become part of the highest class in our society. The average Joe gets doubled screwed because they were "unfairly" treated in the first place, and then those companies that get fined, jack up their prices on the next round of goods passing the fine onto the people!

 

[spongiemaster]

Huh?! I just found it funny that the OP had the mistake in it making it seem as if nvidia has a police office.

I know. I was joking. Nvidia isn't putting a police station in their office to fend off a gov't search raid.

 

[palladin9479]

But...what did they do wrong? Get there first? Are they just too successful? I don't see any specific charges here.

Being successful or getting there first aren't a problem, it's what they did afterward that will be examined. Did they use their market position to hinder rivals from competing with them or not. Whenever someone becomes successful the very first thing they do is find a way to ensure they stay that way, companies are very much like people in this regard. Once they establish a market leadership position, they don't want to lose it to a competitor who happens to later invent a better mousetrap, so they will frequently engage in anti-competitive practices. Those usually include secret NDA contracts, rebates, buy outs or investor manipulation.

 

[renz496]

i mean nearly everyone would say they are being way too greedy since pandemic .

not related to the reason probably but nobody wants a monopoly for anything.

Its very bad in everything as that gives said entity basically 100% control of it.

But then when competitor offering cheaper options consumer still buy nvidia expensive GPU.

 

[TerryLaze]

it's what they did afterward that will be examined.

Yes, but the thing is that they investigate this without any actual suspicions, it's just, company too big=we will look into it.

There has been zero accusations by anybody that nvidia did anything bad, other than charge too much but that in itself is nothing any government can say anything against. It's sellings stuff too cheaply, be it outright or due to rebates or other things, that causes other brands to not be able to make any money if they had to compete on price which they all do.

Whenever someone becomes successful the very first thing they do is find a way to ensure they stay that way, companies are very much like people in this regard. Once they establish a market leadership position, they don't want to lose it to a competitor who happens to later invent a better mousetrap, so they will frequently engage in anti-competitive practices. Those usually include secret NDA contracts, rebates, buy outs or investor manipulation.

But in the technology market that happens automatically, if a company invested in infrastructure for one product then it will be a much bigger cost to switch to a different product, and that doesn't just include software and hardware but also training for people and downtime.

 

[hotaru251]

But then when competitor offering cheaper options consumer still buy nvidia expensive GPU.

focus seems to be on AI part of the company.

If you need AI at large scale (i.e. likes of a big company like Google or Tesla's 10k h100's) its Nvidia. The cost to performance is unmatched.


The cost of these GPU for ai is "expensive" to normal people but to a company its nothing as they don't look short term but long term and the $ is going to be profitable over time as time is money)

 

[tamalero]

Remember when the government fined a company for "unfair" practices, then turned around and gave the money back to the people who were "unfairly" treated??? Oh wait, thats not how this works...

Heres how it really works, government fines companies, takes the money and our elected officials become part of the highest class in our society. The average Joe gets doubled screwed because they were "unfairly" treated in the first place, and then those companies that get fined, jack up their prices on the next round of goods passing the fine onto the people!

Dudebros are funny..

Sure, lets give everything to corporations. No questions asked.. lets see how the normal everyday people..
Oh wait, that already happened in the 1800's and caused desolation, abuse, insane work hours, super low wages, child labour, no rights, very high levels of accidents, many of these fatal or life changing, pollution, poisoning..etc..

 

[tamalero]

Being successful or getting there first aren't a problem, it's what they did afterward that will be examined. Did they use their market position to hinder rivals from competing with them or not. Whenever someone becomes successful the very first thing they do is find a way to ensure they stay that way, companies are very much like people in this regard. Once they establish a market leadership position, they don't want to lose it to a competitor who happens to later invent a better mousetrap, so they will frequently engage in anti-competitive practices. Those usually include secret NDA contracts, rebates, buy outs or investor manipulation.

This.
The investigation will most likely focus on Nvidia manipulating the market to inflate prices.
Like limit production to inflate demand or other stuff.
Remember, Nvidia and other AIBS already were caught selling miners stuff directly outside and in some cases even smuggling chips.

 

[Elusive Ruse]

ITT we go to bat for $1 trillion corps.

 

[fleurdelis]

if a company invested in infrastructure for one product then it will be a much bigger cost to switch to a different product, and that doesn't just include software and hardware but also training for people and downtime.

It's exactly this.

Anyone who has exposure to AI knows that it's Nvidia's software, not hardware that got it to where it is. On a pure teraflops price : performance basis AMD hardware is in most cases better.

Yet still nobody uses it for AI because Nvidia has put so much more effort into the software ecosystem. Even if AMD were to provide (bug-free and optimised!) ROCm support for all the major ML frameworks tomorrow it would still take years for them to get meaningful market share thanks to industry inertia.

Nvidia didn't sabotage AMD, they just didn't go out of their way to help them. It's like suing Apple for not allowing MacOS to work on non-Apple hardware.

Commenters in here really have no idea about AI, they're just mad that Nvidia is charging them more for gaming GPUs than they want to pay.

 

[SyCoREAPER]

I'll never understand success being abuse.

Same thing happens to Google and Microsoft all the time.

Apple usually doesn't get sued, guess they aren't doing that great by EU standards lol

 

[TerryLaze]

I'll never understand success being abuse.

Same thing happens to Google and Microsoft all the time.

Apple usually doesn't get sued, guess they aren't doing that great by EU standards lol

Apple only does great in smartphones and there are plenty of of other companies in that market.

 

[williamcll]

Apple usually doesn't get sued, guess they aren't doing that great by EU standards lol

Why did you think Apple switched to USBC

 

[SyCoREAPER]

Apple only does great in smartphones and there are plenty of of other companies in that market.

That was sarcasm.

Why did you think Apple switched to USBC

Because they skirted around adopting USB once already and the EU was running out of things to come after Google and Microsoft for.

 

[Dantte]

Dudebros are funny..

Sure, lets give everything to corporations. No questions asked.. lets see how the normal everyday people..
Oh wait, that already happened in the 1800's and caused desolation, abuse, insane work hours, super low wages, child labour, no rights, very high levels of accidents, many of these fatal or life changing, pollution, poisoning..etc..

No one except you are making this suggestion... My point is if the government is going to fine companies for "unfairly" treating the people, they should in turn be giving those fines to the people who were "unfairly" treated. Instead this is not what government does, they take those fines and pocket/profit from it, and the people continue to suffer more as companies then pass-on their losses from the fines to the poeple.

 

[hannibal]

There has been cases when one company is too big, it has been forced to two companies to get some competition... But that is extremely rare thing to happens. I don´t even remember when it was last time this has happened.

Nothing fishy in this. Nvidia is big, so they keep on eye on it to be sure that Nvidia does not use its status wrong way. Asking $2000 for 5060 is not a problem, but if 5060 is the only option in the market then it could be...