Nvidia AI Chip Provide Is a ‘Enormous Bottleneck,’ EU Competitors Chief Warns

(Bloomberg) — European Union competitors chief Margrethe Vestager warned of a “large bottleneck” in Nvidia Company AI chips provide, however mentioned watchdogs are nonetheless making up their minds about what, if something, to do about it. 

“We’ve been asking them questions, however that’s actually preliminary,” she advised Bloomberg throughout a visit to Singapore. That “wouldn’t” up to now “tick the field of being regulatory motion.”

Nvidia has drawn the eye of regulators since changing into the largest beneficiary of the bogus intelligence spending growth. Its graphics processing models – or GPUs – are prized by information middle operators for his or her capability to crunch the huge quantity of data required to develop AI fashions. 

The chips have change into one of many hottest commodities within the tech world, with cloud computing suppliers competing with each other to get entry to them. Nvidia’s in-demand H100 processing models have helped them acquire a market share of above 80%, in line with estimates, forward of rivals Intel and Superior Micro Gadgets. 

Regardless of the provide squeeze, Vestager mentioned that secondary markets within the provide of AI chips might assist to spark innovation and truthful competitors.

However she mentioned firms which might be dominant might face sure restrictions on their habits sooner or later. 

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“When you’ve got that sort of dominant place within the market, there are issues that you just can not do {that a} small firm can do,” she mentioned. “However apart from that, so long as you do what you are promoting and are respecting that, you’re good.”