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China finds Nvidia violated antitrust law in chip deal probe
BusinessLine· 2025-09-15 11:13
Group 1 - Nvidia Corp. was found to have violated anti-monopoly laws in China regarding its acquisition of Mellanox Technologies Ltd., increasing pressure on US-China trade negotiations [1][3] - The acquisition, valued at $7 billion, was initially approved by Beijing under the condition that Nvidia would not discriminate against Chinese companies [3] - Following the ruling, Nvidia's shares fell approximately 2% in pre-market trading, and US stock index futures saw reduced gains [1][2] Group 2 - The ruling comes amid ongoing US-China negotiations in Madrid, which are crucial for the relationship between the two largest economies [2][7] - The US government had previously restricted Nvidia from selling advanced AI chips to Chinese companies due to national security concerns, prompting Nvidia to redesign its chips for compliance [4][5] - The Chinese government has encouraged local companies to avoid Nvidia's H20 accelerator, citing security issues, despite recent agreements allowing Nvidia and AMD to sell some AI chips to China [5][6]