BEIJING: China has opened an antitrust investigation into Nvidia, the world’s leading AI chipmaker, in a move that escalates the ongoing chip war with the United States. The probe centers around Nvidia’s 2020 acquisition of Israeli networking firm Mellanox, with China’s government suggesting it may violate anti-monopoly laws, although the specifics remain unclear. Despite the investigation, Nvidia’s stock saw only a slight dip of 2% in premarket trading.
This latest development follows a series of escalating measures in the AI and semiconductor sectors, with the US imposing tighter restrictions on chip exports to China to curb its AI advancements. In response, China has retaliated by banning key materials for chip production and accusing the US of unfairly restricting its access to technology.
Nvidia, a key player in the AI revolution, faces pressure both from China and the US, where it is also under antitrust scrutiny. Both countries are increasing investments in their own semiconductor industries, with the US pushing billions through the CHIPS Act and China creating its largest-ever semiconductor fund.
