NVIDIA's French office was subjected to a surprise inspection by the competition regulatory authorities, causing a temporary narrowing of the stock price increase.

On Thursday, September 28th, it was reported by the media that the French competition regulatory authority raided Nvidia's office in the country on allegations of engaging in anti-competitive behavior. This is the first major regulatory review that the company has faced since becoming a leading supplier of artificial intelligence chips.

The French competition management agency disclosed its action plan for the surprise inspection on Wednesday, but did not reveal the specific practices being investigated or the company being targeted, only stating that it belonged to the "graphics card industry." However, insiders have indicated that the target of this action is Nvidia, the world's largest manufacturer of artificial intelligence and computer graphics chips (GPUs).

Typically, such raids last for several hours, with officials appearing at the company's premises early in the morning, conducting searches, seizing physical and digital materials, and interviewing employees. The French antitrust authorities have stated that their surprise inspection has been approved by a judge.

The French antitrust authorities have stated that this week's action follows a broader investigation into the cloud computing industry, which raised concerns about cloud computing companies potentially using their computing power to exclude smaller competitors.

After the news was announced, Nvidia's stock gains quickly narrowed to less than 1%.