The U.S. government has blocked Nvidia AI and other American chip vendors from selling many of their top artificial-intelligence chips to China, while Beijing has opened a fresh antitrust investigation into the company.
China has accused the AI company of violating the country’s antimonopoly laws and said it would step up scrutiny of the world’s leading chipmaker. The escalating tensions with Washington occur as the two countries hold trade talks this week.
Chinese regulators said a preliminary investigation found that Nvidia didn’t comply with conditions imposed when it purchased Mellanox Technologies, a network and data transmission company.
The clash highlights how Nvidia has become a centerpiece in the intensifying technology and trade battle between the world’s two largest economies.
China’s Regulatory Escalation
China’s State Administration for Market Regulation announced that it had launched a preliminary investigation into Nvidia, alleging violations of the country’s antimonopoly law tied to the company’s $7 billion acquisition of Israeli networking firm Mellanox Technologies in 2020. The deal was approved on the condition that Nvidia ensure a continued supply of chips to China.
“Beijing likely was signaling that Nvidia is not a bargaining chip for the U.S.,” said Feng Chucheng, founding partner of Hutong Research. The move comes as both sides finalize a framework deal on TikTok in ongoing trade talks, underscoring the broader political stakes. Read more from WSJ.