Nvidia's AI Chip Supply Huge Bottleneck and Regulatory Concerns

TapTechNews July 6th news, according to a Bloomberg report late Friday local time, European Commission Competition Commissioner Margrethe Vestager warned: There is a huge bottleneck in the supply of Nvidia's AI chips, and regulators are still considering whether or how to take action.

We have raised some questions to them, but it is still at a very preliminary stage, she told Bloomberg during a visit to Singapore, and it is not enough to be the basis for regulatory action for now.

Since becoming the biggest beneficiary of the AI spending boom, Nvidia has been under the spotlight of regulators. Because it can handle the massive amounts of information required to develop AI models, Nvidia's GPUs are highly favored by data center operators. Reports point out that these chips have become one of the hottest commodities in the tech world, and cloud computing providers compete with each other to obtain these chips.

Data shows that Nvidia's H100 processing unit is in short supply, helping Nvidia capture more than 80% of the AI computing market share, ahead of rivals Intel and AMD.

Vestager believes that in the face of tight supply, the secondary market for AI chip supply may help stimulate innovation and fair competition. But she also said that in the future a dominant company may face certain behavioral restrictions.

If a company is dominant in the market, there are certain things you can't do that a small company can. She said, But other than that, as long as you run your business well and respect the rules, then it's okay.

According to TapTechNews' previous report, Nvidia's new GB200 series AI chips are in short supply. After Nvidia increased its advanced process wafer orders to TSMC, it also placed additional orders with back-end packaging and testing factories last month, and the related order volume of ASE and King Yuan Electronics in the fourth quarter will double compared to the previous quarter.