China’s market regulator has opened an investigation into Nvidia, the top AI chipmaker suspected of violating anti-monopoly laws in a significant deal in 2020, state broadcaster CCTV reported.
The investigation focused on Nvidia’s recent moves and its purchase of Mellanox Technologies four years ago. The Chinese government approved the $7 billion acquisition of the Israeli-American tech company on the condition that Mellanox share information about new products with competitors within 90 days after Nvidia has it.
Economic struggle
As a leader in the supply of chips for artificial intelligence, Nvidia is embroiled in the economic battle between the United States and China.
Washington has banned Nvidia from selling its most advanced semiconductors to Chinese companies, leading to fierce criticism and countermeasures from Beijing. In turn, China is restricting the export of essential raw materials to produce semiconductors in the US.
In addition, future US president Donald Trump threatens to impose high import tariffs on goods from China, raising fears of an open trade war.