While negotiating European regulatory difficulties, Nvidia (NVDA, Financials) is making progress in AI technology alliances. The corporation is under investigation by European Union antitrust authorities and has engaged in notable joint ventures.
Using the newest GB200 NVL72 servers, which contain Nvidia's "Blackwell" processors, Nvidia is collaborating with Italian firm iGenius to create one of the biggest AI systems, Reuters said, citing anonymous sources on the matter. Said to be operational by mid-next year, the data center is situated in southern Italy. This partnership, according to Reuters, seeks to use Nvidia's sophisticated artificial intelligence capacity to improve company data processing effectiveness.
Furthermore under negotiation with Taiwan Semiconductor Manufacturing Co. (TSM, Financials) is Nvidia's Blackwell AI chip production at TSMC's recently opened Arizona plant. Early next year is expected to see beginning of production. This action fits with Nvidia's larger plan to serve its fast-growing AI business and diversify its manufacturing base.
The European Union antitrust authorities are looking into Nvidia for possible anti-competitive behaviors including discounts given to consumers buying GPU software packages coupled with hardware. According to Reuters, this probe fits within the EU's analysis of Nvidia's $700 million offer for Run:ai. In the semiconductor and artificial intelligence sectors, especially with regard to leading companies like Nvidia, regulatory scrutiny is becoming more intense.
New U.S. export limits on chip technology to China and rising investments in AI infrastructure by businesses like Amazon and Meta Platforms have caused swings in Nvidia's shares on the market. Nvidia's strong position in the AI chip industry despite these obstacles highlights its capacity to change with changing regulatory and commercial factors.
NVDA stock is up 218.1% this year, on account of the positive impact of AI on the broader stock market, and Nvidia's drive to capitalize on the trend.
