China’s State Administration for Market Regulation has initiated an antitrust investigation into American chipmaker NVIDIA over potential anti-monopoly violations, reported Bloomberg.

The American chipmaker is being scrutinised for its recent activities and its acquisition of Mellanox Technologies.

This inquiry comes as tensions between the US and China escalate.

The probe is also centred on Nvidia’s adherence to conditions set by China during its $7bn acquisition of Mellanox in 2020.

These conditions required Nvidia to treat Chinese companies fairly and share information about new products.

Nvidia was cited by the news agency as saying in a statement that the company is “happy to answer any questions regulators may have about our business”.

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“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them. We work hard to provide the best products we can in every region and honor our commitments everywhere we do business.”

The US has taken steps to hinder China’s advancement in semiconductor technology, including prohibiting Nvidia from selling its top-tier chips in China.

In response, China imposed export bans on certain materials with technological and military uses.

Earlier in 2024, the US Justice Department launched a probe into Nvidia’s business practices, expressing concerns over potential antitrust violations.

In Europe, France’s antitrust head, Benoit Coeure, indicated that Nvidia might face antitrust charges, and the European Union has also commenced a preliminary investigation into alleged anti-competitive practices in AI chips.

Earlier in December 2024, Reuters reported that Taiwan Semiconductor Manufacturing (TSMC) was in negotiations with NVIDIA to manufacture its Blackwell artificial intelligence chips at TSMC’s upcoming facility in Arizona, the US.