China’s State Administration for Market Regulation (SAMR) has initiated an antitrust investigation into NVIDIA Corporation, focusing on potential violations of anti-monopoly laws and commitments made during NVIDIA’s $6.9 billion acquisition of Mellanox Technologies in 2020.
The probe examines whether NVIDIA has adhered to its pledge to avoid discriminatory practices against Chinese firms, a condition set during the Mellanox acquisition approval.
This development occurs amid escalating U.S.-China tensions over semiconductor technologies. The U.S. has imposed restrictions on exporting advanced chips to China, compelling NVIDIA to offer modified versions of its GPUs to the Chinese market. Concurrently, China is scrutinizing foreign tech companies, with NVIDIA’s investigation seen as a response to U.S. policies.
In the U.S., NVIDIA is under a separate antitrust investigation by the Department of Justice, focusing on potential market dominance abuse in the AI chip sector.
Following the announcement of the Chinese investigation, NVIDIA’s stock declined by approximately 2.6%, closing at $138.81.
NVIDIA has not publicly commented on the Chinese antitrust probe.
This situation highlights the complex regulatory environment NVIDIA faces globally, navigating geopolitical tensions and maintaining compliance across multiple jurisdictions.
