China accuses Nvidia of breaking anti-monopoly law during trade talks
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The news: China has accused Nvidia of violating its anti-monopoly law, announcing on Monday that a preliminary investigation linked to the US chipmaker’s USD 6.9 billion ($10.4 billion) Mellanox acquisition found breaches of conditions set when the deal was approved in 2020.
The announcement coincided with high-level US-China trade talks in Madrid. US Treasury Secretary Scott Bessent said the “poor timing” of China’s Nvidia investigation was discussed during the trade talks.
The State Administration for Market Regulation said it would continue its investigation but did not detail the violations or potential penalties.
Separately, cloud computing company CoreWeave disclosed Nvidia earlier this month had agreed to a USD 6.3 billion cloud services deal with CoreWeave through April 2032 that guarantees Nvidia will buy any cloud capacity not sold to other customers
The numbers: Under China’s antitrust law, fines can range from 1% to 10% of a company’s previous year’s sales. Nvidia generated USD 17 billion in revenue from China in the fiscal year ending January 2025, representing 13% of total sales.
Nvidia’s shares fell close to 2% before recovering to trade 0.20% lower in the afternoon.
