Nvidia hit with China probe as tech war with U.S. escalates

China has launched an investigation into Nvidia Corp. over potential anti-monopoly violations related to its 2020 acquisition of Mellanox Technologies Ltd. This move is part of Beijing's response to escalating U.S. technology restrictions. The probe focuses on whether Nvidia adhered to conditions set by China, which approved the acquisition on the basis that Nvidia would not discriminate against Chinese companies. This investigation comes amid heightened tensions between the U.S. and China, with the U.S. imposing sanctions to slow China's advancement in chip technology and barring Nvidia from selling its most advanced semiconductors to Chinese firms.

Nvidia's market value has surged due to increased demand for AI-capable chips, making it a significant target in the ongoing tech trade war. The company's dominance in the AI-chip market has attracted scrutiny from various global regulators, including the U.S. Justice Department and the European Union, over potential antitrust violations. These concerns revolve around Nvidia's market practices, which may hinder competition and limit buyers' options. Despite these challenges, Nvidia remains a key player in the AI sector, with its graphics processor units being crucial for training AI systems.

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China has initiated an anti-monopoly investigation into Nvidia over a 2020 deal, amid escalating tech tensions with the U.S.
Nvidia's market value has surged due to high demand for AI-capable chips, making it a significant target in the tech trade war.
The U.S. has imposed restrictions on Nvidia's advanced semiconductor sales to China, with similar pressures on allies like the Netherlands.
Globally, Nvidia faces scrutiny over potential antitrust violations, with investigations in the U.S., France, and the European Union.

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Nvidia hit with China probe as tech war with U.S. escalates

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