China Accuses NVIDIA of Anti-Monopoly Violations

According to Reuters, China’s State Administration for Market Regulation (SAMR) issued a statement today declaring that NVIDIA’s $6.9 billion acquisition of Mellanox in 2019 violated both the Anti-Monopoly Law of the People’s Republic of China and the restrictive conditions imposed on the deal at the time, with SAMR signalling a deeper investigation to follow.

The article notes that Mellanox has long been key in data centres and AI infrastructure, and that NVIDIA’s purchase was its largest to date, intended to integrate interconnect technologies with its GPUs. Although regulators approved the deal in 2020 under conditions aimed at openness in technology licensing and fair supply practices, the outcome of the preliminary anti-competitive finding could force NVIDIA to adjust its sales and distribution strategies in China and potentially offer further concessions.

The piece also mentions visits by NVIDIA CEO Jensen Huang to China amid geopolitical frictions, with regulators’ actions adding fresh uncertainty to NVIDIA’s regional operations. With a global AI GPU shortage cited, the investigation could have broader implications for NVIDIA’s China strategy, shipments, and partnerships.