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Nvidia (NASDAQ:NVDA) is in the hot seat as EU antitrust regulators dig into its $700 million bid for Run:ai. The concern? Whether Nvidia is using its GPU dominancean eye-popping 84% market shareto lock customers into bundled hardware and software deals. Regulators have sent out questionnaires asking customers if discounts nudged them toward exclusive Nvidia ecosystems, potentially stifling competition. Nvidia isn't fazed, saying no onecustomers, partners, or even competitorshas raised an eyebrow over the deal. Their ace in the hole? A promise to open-source Run:ai software after the acquisition is finalized, hoping to smooth things over with watchdogs ahead of the December 20 review deadline.
While regulators are sizing up Nvidia's market grip, the company is turning heads with its next big move: a heavyweight partnership with Schneider Electric to supercharge AI data centers. Nvidia's top-tier AI servers, slated to launch next year, will pack a punch72 advanced AI chips per unit drawing up to 132 kilowatts per rack. Enter Schneider, whose liquid-cooling systems are set to handle this power surge with finesse. The designs are versatile, scalable, and ready for deployment in both new builds and upgraded facilities. For Nvidia, it's a strategic masterstroke, aligning infrastructure to support its AI ambitions while Schneider strengthens its grip on the data center ecosystem.
For investors, Nvidia's trajectory is a tale of two forces: regulatory headwinds and relentless AI-driven growth. The scrutiny around its market practices could spell uncertainty in the short term, but the long-term playpioneering AI infrastructure with partnerships like Schneideris hard to ignore. With demand for AI surging and Nvidia leading the charge, the stakes have never been higher. Whether you're cautious about the regulatory risks or bullish on its transformative vision, Nvidia remains the name to watch in the race to dominate the future of AI.
This article first appeared on GuruFocus.