China finds Nvidia violated anti-monopoly law in preliminary probe
China’s market regulator announced on Monday that a preliminary investigation found Nvidia in violation of the country’s anti-monopoly law, marking another challenge for the U.S. chipmaker. Details of the alleged violations were not disclosed.
The State Administration for Market Regulation (SAMR) launched the probe in December 2024, citing suspected breaches of China’s anti-monopoly rules and commitments Nvidia made during its 2020 acquisition of Israeli chip designer Mellanox Technologies. SAMR said the investigation will continue, and Nvidia has not yet commented, News.Az reports, citing Reuters.
Under Chinese law, companies found guilty of antitrust violations can face fines ranging from 1% to 10% of annual sales. Nvidia generated approximately $17 billion in revenue in China in its latest fiscal year, accounting for 13% of total sales. Shares of the company fell 2% in pre-market trading on Monday.
The announcement comes amid U.S.-China trade talks in Madrid, where Nvidia chips and broader technology issues are expected to be discussed. Access to advanced AI chips remains a key point of tension between the two countries, with China seeking to reduce reliance on U.S. technology.
Last month, Chinese regulators summoned companies including Tencent and ByteDance over purchases of Nvidia’s H20 AI chip, raising concerns about information security and potential backdoor risks.
Nvidia, a leading maker of AI and gaming chips, has been at the center of U.S.-China tech tensions, with Washington imposing and later relaxing restrictions on its sales of advanced chips to China.
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