China has launched an antitrust investigation against Nvidia
Chinese authorities have launched an antitrust investigation into Nvidia, alleging the company violated the terms of its deal to acquire Israeli company Mellanox for $6.9 billion in 2020. Beijing approved the Nvidia and Mellanox deal four years ago on the condition that Nvidia would not discriminate against Chinese companies, but Chinese regulators say the US company violated the terms.
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Specifically, Nvidia is accused of failing to provide information about new Mellanox products to other Chinese chip makers within 90 days, which could lead to a monopolisation of the market. This investigation coincides with the tightening of US sanctions against China aimed at limiting the production of advanced AI chips.
In response, China has imposed restrictions on exports of key minerals to the US. At the same time, the US Department of Justice is also investigating Nvidia for suspected monopolistic activities.
Since the Mellanox acquisition, Nvidia's value has grown from less than $200 billion to more than $3 trillion in 2024, making it one of the most valuable companies in the world.