"China has dealt Nvidia another blow, finding the chipmaker in violation of the country's anti-monopoly Law and escalating a long-running regulatory headache into a full investigation. China's State Administration for Market Regulation (SAMR) said on Monday that its preliminary investigation found Nvidia violated the country's competition rules, as well as the terms of a conditional approval it granted in 2020 for one of Nvidia's acquisitions."
"The watchdog's statement didn't say exactly what Nvidia had done wrong, but pointed squarely at conditions imposed when it initially waved through the company's $6.9 billion takeover of Mellanox Technologies. Those conditions were designed to stop Nvidia from using its newly acquired networking arm to squeeze Chinese rivals and to maintain interoperability with other vendors. Nvidia didn't immediately respond to The Register's request for comment, but the company's stock was quick to react - dipping 2 percent in pre-market trading on Monday."
"In July, Beijing summoned the company over security concerns about its H20 AI accelerators, claiming there were "serious security vulnerabilities" in Nvidia's China-specific product line. These chips were hastily cooked up after Washington tightened export rules in 2023 to stop China from getting its hands on top-tier AI silicon for military and surveillance use."
China's State Administration for Market Regulation (SAMR) concluded a preliminary investigation found Nvidia in violation of the country's Anti-Monopoly Law and the terms of a conditional approval tied to its 2020 Mellanox acquisition. SAMR has escalated the matter to a formal probe that could result in significant fines and new restrictions on how Nvidia sells equipment in China. The regulator pointed to conditions meant to prevent Nvidia from using Mellanox to squeeze Chinese rivals and to preserve interoperability. Earlier in the year Beijing raised security concerns about China-specific H20 AI accelerators after U.S. export controls tightened.
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