Trillion-dollar market cap NVIDIA, subject to a surprise inspection by the French competition regulatory authority

According to media reports, the French competition regulatory authority conducted a surprise search of NVIDIA’s local offices this week, citing allegations that the chip giant was engaged in anti-competitive behavior.

The French competition regulatory authority disclosed the surprise search operation on Wednesday but did not reveal which behaviors were being investigated nor specified which company was targeted, stating only that the company is in the graphics card industry.

Informed sources stated that NVIDIA, the world’s largest manufacturer of artificial intelligence (AI) and computer graphics chips, was the target of the French regulatory authority’s action.

The French regulatory authority indicated that this week’s action was taken after a broader investigation into the cloud computing industry, expressing concerns that cloud computing companies might use their acquired computing capabilities to exclude smaller competitors.

Typically, such raids last several hours, with officials appearing at the company early in the working hours, searching the company premises, seizing physical and digital materials, and questioning employees present. The French competition regulatory authority stated that its surprise inspection operation has received judicial approval.

After the news was released, NVIDIA’s gains quickly narrowed, and the stock price plunged more than 1% at one point during the session. As of the local closing time on September 28, NVIDIA was at $430.89, up 1.46%, with a market value of 1.1 trillion dollars.