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NVIDIA’s troubles in China continue, as the country’s market regulator has accused the company of violating anti-monopoly laws.
NVIDIA Is Now Stuck at ‘Three’ Different Fronts in China, Following Regulatory Hurdles, AI Chip Deadlock & Growing Competition
NVIDIA is facing significant challenges in China. New regulatory hurdles keep arising for the company. According to a notice from the State Administration for Market Regulation (SAMR) in China, NVIDIA has been found violating anti-monopoly laws. Based on Reuters’ claims, the firm could be fined between 1% and 10% of its annual revenue, which amounts to up to $1.7 billion.
The investigation was initiated by China in December 2024 and suspected that NVIDIA had breached its pledges to Beijing when it sought regulatory approval for the acquisition of Mellanox Technologies in 2020. The terms included a ‘FRAND’ framework where NVIDIA promised not to restrict access to GPU accelerators or networking products in China. However, with recent geopolitical conditions, Beijing is now pointing out that NVIDIA has restricted its technology flow to the country.
Additionally, China’s stance has shifted as the US-China trade delegation meets in Madrid for negotiations. This move implies that China will not hold back on restricting the influence of US companies in the region. NVIDIA is battling at three fronts: introducing an AI solution to Chinese markets, facing criticism over its H20 AI chip, and being investigated for integrating security measures into its chips.
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