China is one of Nvidia’s biggest markets, especially for data centers, gaming and artificial intelligence applications.
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China’s market regulators said on Monday that Nvidia violated the country’s anti-control laws. A preliminary investigation suggests that Beijing will continue its investigation into the US chip giant.
Nvidia’s shares fell approximately 2% in pre-market trading.
Late last year, China’s Market Regulation Administration (SAMR) began investigating Nvidia in connection with Melanox’s acquisition and several agreements that took place during the acquisition. Nvidia acquired an Israeli technology company in 2020 that creates network solutions for data centers and servers.
In a preliminary investigation, SAMR said Nvidia violated China’s anti-monopoly law in relation to its acquisition and its terms. China’s market regulators did not specify how Nvidia allegedly violated the country’s laws.
CNBC contacted Nvidia for comment.
An update from SAMR could complicate trade talks between the Chinese and US authorities that began Sunday in Madrid, Spain.
Tensions between Beijing and Washington appear to be on the rise in technology. China opened two separate probes in the semiconductor on Saturday. One is an anti-dumping investigation of certain chips imported from the US, and the other is a prohibition of discrimination over US restrictions on China’s chip industry.
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