China Launches Antitrust Probe into Nvidia, Alleging Violations and Breach of Acquisition Commitments
Chinese regulators have accused Nvidia of violating antitrust laws, according to a statement from the State Administration for Market Regulation (SAMR). The announcement, released on Monday, said that Nvidia breached China’s anti-monopoly rules, though it provided no further details. SAMR also revealed it suspects the company violated commitments made during its 2020 acquisition of Israeli chipmaker Mellanox, which Beijing had conditionally approved. As a result, the regulator launched a formal antitrust investigation into the Mellanox deal in December 2024. The move adds to growing tensions between the United States and China over semiconductor technology. Since 2022, the U.S. has imposed strict export controls on advanced chips and related technologies to limit China’s access to cutting-edge AI hardware. In April, the U.S. government introduced new licensing requirements for Nvidia’s H20 chip, a model designed to meet earlier restrictions. The company warned that these rules would cost it an estimated $5.5 billion in first-quarter revenue. Nvidia CEO Jensen Huang has previously highlighted the potential of China’s AI market, projecting it could reach $50 billion in value within a few years. He has called losing access to that market a “tremendous loss” for the company. In July, Nvidia said it was preparing to resume sales of the H20 chip in China after receiving assurances from the U.S. government on export compliance. Nvidia has not yet responded to the latest Chinese antitrust allegations. The case remains under investigation, and further details are expected in the coming weeks. This development underscores the increasing regulatory scrutiny facing global tech giants operating in China’s fast-evolving AI and semiconductor landscape.
