NVIDIA under fire. The US vs. China dispute is intensifying
NVIDIA found itself at the center of the international game. The Chinese authorities accuse it of monopolistic practices, and American sanctions are exacerbating the situation.
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In the face of the growing trade war between the United States and China, NVIDIA finds itself in a difficult situation. Chinese media report accusations from the local authorities against the Greens. This is about an alleged violation of antitrust regulations. The case centers around the takeover of an Israeli-American company Mellanox.
China responds to recent US sanctions
Mellanox has been operating on the market since 1999 and was sold to NVIDIA in 2020 for $7 billion. The company is a key element of Green’s AI server infrastructure, enabling efficient interconnection of multiple GPUs DGX systems using InfiniBand and Ethernet switches.
China’s latest actions include a direct response to the recent US sanctions. Big Brother tightened regulations on the export of semiconductor chip production tools and introduced a ban on the export of advanced HBM memory. All for the sake of it slow down China’s development in the artificial intelligence market.
The authorities in Beijing are looking for ways to counter American pressure. The reports include information about 20% price reductions for domestic products as a response to the introduction of an additional 10% tariff in the US on goods from China. In both cases, the aim is to stimulate the domestic market.
When asked for a comment by PCMag, NVIDIA emphasizes its neutrality and competitiveness. Still the company’s share price decreased by 2%.which may herald market uncertainty. However, this does not change the fact that NVIDIA remains the second most valued company in the worldlosing only to Apple.
Analysts remind that antitrust regulations are not just a formality. It is also under increasing pressure Googlewhich the U.S. Department of Justice is considering extortion against sales of the Chrome browser for $20 billion. In NVIDIA’s case, the case could take months or even years, giving the company a hard time time to react and defend your position in the face of growing trade tensions.
