China accuses Nvidia of antitrust violations tied to Mellanox deal

According to Bloomberg, Chinese regulators say Nvidia violated conditions of its 2020 acquisition of Mellanox.

China’s State Administration for Market Regulation (SAMR) announced Monday that the deal had been approved only on the condition that Nvidia would not discriminate against Chinese firms. The agency now claims Nvidia failed to comply. The original approval was granted during trade talks between the US and China in Madrid. Nvidia’s stock slipped about 2 percent in premarket trading after the news.

At the same time, Beijing launched an anti-dumping investigation into US-made semiconductors from companies including Texas Instruments. The move comes against the backdrop of US restrictions on the export of Nvidia’s most advanced AI chips to China. Regulators did not say what new penalties Nvidia might face.