By Sidhima Choudhary
In a preliminary investigation, China ruled Nvidia for violating the country’s anti-monopoly laws, on Monday. The statement was declared by the market regulator, State Administration for Market Regulation, who alleged Nvidia of violating antitrust regulations in a 2020 deal.
Nvidia, the US chipmaker company is alleged to violate the regulations after they acquired a networking gear maker company, Mellanox Technologies Ltd. Soon after the statement release, Nvidia’s trading shares dropped 1% in the US.
The announcement was made on the second day of tariff negotiations between the US and China in Madrid, Spain. The meet is expected to strengthen the relationship between the two largest economies of the world.
Further, China mentioned an anti-dumping investigation to be launched over the weekend. The investigation will focus on just one type of semiconductor made only by the US including Texas Instruments Inc. The regulator did not mention about the remedies they are planning to seek from Nvidia but mentioned about the investigation they are planning to do.
On the same matter, President Donald Trump mentioned he would have a talk with China’s President, Xi Jinping on Friday after the lower-level negotiations between the two. Whereas, US Treasury Secretary Scott Bessent mentioned the poor timing of the Nvidia investigation and when it came across in the public.
Nvidia, is in the epicenter of fragile negotiations between Beijing and Washington because of their pivotal role in promoting future technologies involving artificial intelligence. Currently, Nvidia dominates the chipmaking market which is essentially a very crucial raw material to build and operate AI services at companies from Meta to Deepseek.
Before this, the US government had initially banned Nvidia from selling its most advanced AI chips to other Chinese companies for national security concerns. This included the H100 chip which is designed for high-performance computing workloads. Nvidia further redesigned the chips over two times to comply with the American regulations, making them apt to sell into the other countries.