NVIDIA Under Scrutiny by China for Possible Antitrust Breach

NVIDIA faces a probe by Chinese authorities for a potential antitrust breach linked to its 2020 acquisition of Mellanox Technologies. Allegations suggest failure to provide rivals product updates as per agreement terms, amidst rising US-China trade tensions.

Chinese authorities have initiated an investigation into NVIDIA over suspicions of antitrust violations related to its 2020 purchase of Mellanox Technologies. This probe, reported by The New York Times, focuses on whether NVIDIA failed to adhere to conditions requiring the provision of Mellanox new product information to competitors.

China’s State Administration for Market Regulation believes these terms may not have been honored, sparking concerns amid an ongoing US-China trade conflict. Previously, the US Department of Justice launched an antitrust review of NVIDIA in 2024, highlighting global scrutiny of the company.

Alongside regulatory pressures, the geopolitical landscape intensifies, with the US Department of Commerce placing sanctions on Chinese firms and components integral to AI advancements, impacting NVIDIA’s operations as a key player in AI chip production.

NVIDIA, deriving a significant portion of its revenue from China, stands central in this escalating tech rivalry. How the investigation unfolds could further inflame tensions between these global economic powerhouses.