A Chinese regulator announced Monday that it was looking into Nvidia for potential violations of the nation’s antimonopoly law, which put pressure on the company’s stock in the premarket.
The State Administration for Market Regulation launched an inquiry into the chipmaker in relation to its purchase of Mellanox.
“The State Administration for Market Regulation is opening a probe into Nvidia in accordance with law, due to Nvidia’s suspected violation of China’s anti-monopoly law and the State Administration for Market Regulation’s restrictive conditions around Nvidia’s acquisition of Mellanox shares.”
The announcement coincides with a growing rivalry between China and the United States over chipmaking capabilities.
In an effort to prevent the nation from bolstering its military, the United States has prohibited Nvidia and other major semiconductor companies from selling their most cutting-edge AI processors in the second-largest economy in the world.
Source (CNBC)
