The ongoing technology rivalry between the US and China has taken a new turn. China has launched an antitrust investigation into Nvidia, charging the company with violating the terms of its acquisition of Mellanox Technologies in 2020.
This move comes after the US had tightened restrictions on China's semiconductor industry, affecting 140 companies and equipment used for making microchips. The US sanctions also prohibited Nvidia from supplying AI chips to China, where the company had long dominated the AI product market.
Although Nvidia had made adjustments to its chips to comply with the requirements, the company remains in a precarious situation due to the competition from Huawei. Analyst Bob O'Donnell of TECHnalysis Research believes that even with the new investigation, these measures are unlikely to affect Nvidia in the near future, given that the US restrictions have already significantly reduced its presence in the Chinese market.
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