Nvidia’s market value has ballooned this year on demand for chips that can run AI programs
The State Administration for Market Regulation opened an investigation into the company’s recent behavior as well as the circumstances surrounding the acquisition of Mellanox Technologies Ltd., the government said in a statement on Monday. Beijing gave approval for the deal four years ago, on condition that Nvidia not discriminate against Chinese companies.
China had approved Nvidia’s US$7 billion acquisition of Mellanox on condition that the Israeli computer networking equipment maker provide information about new products to rivals within 90 days of making them available to Nvidia.
A representative for Nvidia didn’t immediately respond to a request for comment.
Washington has sought to slow China’s development of advanced chip technology and has barred Nvidia from selling its most advanced semiconductors to companies there. The U.S. has also pushed allies to make similar moves. The Biden administration pressured the Dutch government to prevent ASML Holding NV, which has a monopoly on machines that make the most advanced chips, from not only selling its highest-performing equipment to China, but repairing and maintaining it as well.
With assistance from Daniel Zuidijk, Pei Li, Debby Wu and Lynn Doan