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Nvidia’s presentation at a technology conference in Shanghai, China on September 5, 2024
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Nvidia shares fell Monday morning after a Chinese regulator said it is investigating the chipmaker.
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The State Administration for Market Regulation said it is investigating Nvidia for its 2020 acquisition of Mellanox Technologies.
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Regulators in China and other countries have approved the deal, with Chinese officials demanding that Nvidia not discriminate against Chinese companies.
Nvidia (NVDA) shares fell in premarket trading on Monday after China’s State Administration for Market Regulation (SAMR) said it is investigating the chipmaker for possible violations of China’s anti-monopoly laws.
The antitrust regulator said Monday it is investigating Nvidia in connection with the chipmaker’s acquisition of Israeli-American networking hardware maker Mellanox Technologies in 2020. SAMR said it is “opening an investigation into Nvidia in accordance with the law,” according to a translation of the statement by CNBC.
The $6.9 billion deal was announced in March 2019 and completed in April 2020, days after the same Chinese regulators signed off on the deal, along with regulators in Europe, Mexico and the US.
Approval for the deal came with the condition from Chinese regulators that Nvidia would not discriminate against Chinese companies and that Mellanox would notify competitors of new products within 90 days of delivering them to Nvidia, according to Bloomberg.
Nvidia did not immediately respond to a request for comment.
The chipmaker’s shares, which have soared on the artificial intelligence (AI) boom, fell more than 2% in premarket trading on Monday but are still up more than 180% since the start of the year .
Update, December 9, 2024: This article has been updated to add information.
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