China has launched an investigation targeting Nvidia
China has launched an investigation targeting Nvidia, accusing the U.S. chipmaker of violating antitrust laws related to a 2020 agreement.
The Chinese market regulator is probing Nvidia's acquisition of Mellanox Technologies in 2020. At the time, many tech giants in the country opposed the deal, fearing the loss of collaboration opportunities and access to new semiconductor technologies.
Mellanox, an Israeli company specializing in computer networking products, focuses on chips that accelerate data flow through servers. Its equipment enables data centers to quickly allocate resources to different types of workloads.
Eventually, the Chinese government approved Nvidia's $7 billion acquisition of the Israeli computer networking equipment manufacturer, with the condition that Mellanox must share new product information with competitors within 90 days of providing it to Nvidia.
Jensen Huang, CEO of Nvidia, said the company convinced Chinese authorities by emphasizing openness and willingness to cooperate with other companies in the industry. He added that the deal would create opportunities for chipmakers to ensure their products work well with Mellanox's new technology.
However, as the leading AI chip supplier, Nvidia has been drawn into the trade war between the U.S. and China. As a subsidiary, Mellanox must also comply with Washington's policies, including restrictions on selling advanced semiconductor components to rivals.
Nvidia’s stock dropped 2% during trading on December 9, settling at $139. Currently, Nvidia representatives have not commented on the news of the investigation by Chinese regulators.
According to Bloomberg, Nvidia has repeatedly tried to supply AI chips to Chinese customers by developing products compliant with U.S. policies. However, things have not gone as planned.
Recently, the U.S. Department of Justice has also sought information to investigate Nvidia for antitrust violations. According to insiders, the company is accused of making it difficult for customers to switch to components from rival companies.
Not only China and the U.S., but France has also identified Nvidia as a prime target for investigating chips used in the AI field. Benoit Coeure, head of the country’s antitrust agency, stated in a press conference in July that the company would face monopoly accusations in the near future.
The Chinese market regulator is probing Nvidia's acquisition of Mellanox Technologies in 2020. At the time, many tech giants in the country opposed the deal, fearing the loss of collaboration opportunities and access to new semiconductor technologies.
Mellanox, an Israeli company specializing in computer networking products, focuses on chips that accelerate data flow through servers. Its equipment enables data centers to quickly allocate resources to different types of workloads.
Eventually, the Chinese government approved Nvidia's $7 billion acquisition of the Israeli computer networking equipment manufacturer, with the condition that Mellanox must share new product information with competitors within 90 days of providing it to Nvidia.
Jensen Huang, CEO of Nvidia, said the company convinced Chinese authorities by emphasizing openness and willingness to cooperate with other companies in the industry. He added that the deal would create opportunities for chipmakers to ensure their products work well with Mellanox's new technology.
However, as the leading AI chip supplier, Nvidia has been drawn into the trade war between the U.S. and China. As a subsidiary, Mellanox must also comply with Washington's policies, including restrictions on selling advanced semiconductor components to rivals.
Nvidia’s stock dropped 2% during trading on December 9, settling at $139. Currently, Nvidia representatives have not commented on the news of the investigation by Chinese regulators.
According to Bloomberg, Nvidia has repeatedly tried to supply AI chips to Chinese customers by developing products compliant with U.S. policies. However, things have not gone as planned.
Recently, the U.S. Department of Justice has also sought information to investigate Nvidia for antitrust violations. According to insiders, the company is accused of making it difficult for customers to switch to components from rival companies.
Not only China and the U.S., but France has also identified Nvidia as a prime target for investigating chips used in the AI field. Benoit Coeure, head of the country’s antitrust agency, stated in a press conference in July that the company would face monopoly accusations in the near future.
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