China Launches Antitrust Investigation Against NVIDIA: So Why?
December 10, 2024
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The pressure from governments on technology companies to compete continues unabated. And now from China to NVIDIA A move has been made. The country launched an antitrust investigation
The pressure from governments on technology companies to compete continues unabated. And now from Chinato NVIDIA A move has been made. The country launched an antitrust investigation against the giant company.
The reason for this review is that NVIDIA, the Israel-based hardware company, in 2020 Mellanox Claim that it does not meet the conditions established at the time of purchase.
It is alleged that the conditions that will increase competition are not met
NVIDIA, which has seen incredible growth over the past three to four years thanks to artificial intelligence, will do the same $6.9 billion huge He became the owner of Mellanox in exchange for a deal. After this merger, DGX launched a brand new GPU called A100.
China was among those who approved this agreement, but certain conditions had to be met. One of these conditions is that NVIDIA and Mellanox have information about new products. Must notify competitors within 90 days would happen. So it was intended to prevent monopoly and increase competition.
Chinese authorities began to think that NVIDIA was not complying and started an investigation into the combination of the two companies. Time will tell which path the investigation will take. There is a possibility that the tech giant could face heavy penalties.
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