NVIDIA's troubles in China aren't looking to stop just yet, as the nation's market regulator has accused Team Green of violating anti-monopoly laws.
NVIDIA Is Now Stuck At 'Three' Different Fronts In China, Following Regulatory Hurdles, AI Chip Deadlock & Growing Competition
Jensen and his company are having a difficult time in China. With every passing week, new hurdles pop up for the firm. NVIDIA is now stuck at three different fronts with its China business, and according to a notice from the State Administration for Market Regulation (SAMR) in China, it is revealed that NVIDIA has been found violating anti-monopoly laws of the nation, and based on what Reuters claims quoting domestic Anti-Monopoly Law (AML), the firm could up fined from 1% to 10% of their annual revenue, which means that Team Green can potentially get a $1.7 billion hit.
The violation notices come from an investigation initiated by China in December 2024. It was suspected that NVIDIA had breached pledges made to Beijing when it was pushing for regulatory approval of the acquisition of Mellanox Technologies in 2020. The terms of the acquisition included a 'FRAND' framework between Beijing and NVIDIA, where the latter wouldn't stop providing China access to GPU accelerators or networking products. However, with the recent geopolitical conditions, it seems like Beijing is pointing out the restricted flow of NVIDIA's technology to the nation with the SAMR violation.
Interestingly, China's change in stance comes as the US-China trade delegation is meeting in Madrid for negotiations on several aspects, and the move does imply that China won't hold off restricting the influence of US companies in the region. Speaking about NVIDIA battling at three different fronts in China, we know that the firm is finding a hard time introducing an AI solution for the markets, and even their H20 AI chip has seen criticism from Beijing.
Moreover, China is also investigating whether NVIDIA integrates security measures in its AI chips and has even pursued the local 'Big Tech' to shift to in-house solutions. Hence, at least periodically, NVIDIA's situation in China isn't looking too good.
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