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China Investigates NVIDIA for Breaching Commitments After Halting GPU Supplies

Daniel Kim Views  

The NVIDIA logo. / Yonhap News
The NVIDIA logo. / Yonhap News

China has initiated an antitrust probe into NVIDIA. China Daily reported on Wednesday that the investigation was prompted by NVIDIA’s decision to halt product supplies to China. Citing that the company breached its initial commitments in light of the U.S. government export controls.

The report details NVIDIA’s acquisition of Israeli semiconductor firm Mellanox in 2019. This merger raised red flags about NVIDIA’s growing market power in the semiconductor industry, potentially stifling competition for graphics processing units (GPUs) and AI accelerators in global and Chinese markets. NVIDIA has made several pledges to address these concerns and secure approval from Chinese authorities.

These commitments included assurances to maintain the supply of NVIDIA GPU accelerators, Mellanox high-speed network interconnection equipment, related software, and accessories to the Chinese market.

China Daily alleges that NVIDIA has reneged on this promise in recent years, ceasing the supply of several GPU accelerator products to China amid the U.S. government export restrictions.

The newspaper argues that this action “infringed upon the legitimate rights and interests of relevant Chinese enterprises,” adding that NVIDIA’s antitrust investigation is a logical consequence of these actions.

China Daily dismisses speculation that the antitrust probe is a warning to the incoming Trump administration or related to the U.S.-China AI supremacy race. It points out that NVIDIA faces similar antitrust scrutiny in the U.S. and that European Union regulators are also investigating potential unfair sales practices by the company.

China’s State Administration for Market Regulation announced on Monday that it was launching an investigation into NVIDIA for alleged antitrust law violations, but no specific details were disclosed at the time.

Daniel Kim
content@viewusglobal.com

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