"In December, China launched an investigation into Nvidia for alleged violations of antitrust law. At the time, this was seen as a retaliatory measure against US restrictions on the Chinese chip sector. Now, it appears that the 2020 acquisition of Mellanox Technologies is also under scrutiny. During that acquisition, Nvidia promised to continue supplying the Chinese market with GPU accelerators for computer calculations. However, US export controls prevented the company from keeping this promise, and it had to discontinue the sale of advanced accelerators."
"China's market regulator has announced that a preliminary investigation shows that Nvidia has violated Chinese antitrust law. Commitments made in connection with the acquisition of Mellanox are also said to have been breached. While China and the United States are negotiating trade in Madrid, Beijing appears to be seeking to strengthen its negotiating position with this move. The preliminary investigation results from SAMR, the Chinese market regulation authority."
SAMR’s preliminary investigation finds Nvidia violated Chinese antitrust law and breached commitments tied to the 2020 Mellanox acquisition. The probe coincides with US-China trade negotiations in Madrid and follows recent US action placing dozens of Chinese firms on a trade blacklist. Nvidia CEO Jensen Huang faces complications in selling modified advanced chips in China after repeated visits to reassure customers. During the Mellanox deal Nvidia pledged continued supply of GPU accelerators to China but US export controls forced discontinuation of advanced accelerator sales. Under China’s anti-monopoly law fines range from 1 to 10 percent of annual revenue; China generated $17 billion for Nvidia last fiscal year, 13 percent of sales. Access to advanced AI chips remains central to the US-China technological rivalry.
Read at Techzine Global
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