Catenaa, Monday, September 15, 2025- China ruled that Nvidia had violated anti-monopoly laws with a high-profile 2020 deal, ratcheting up the pressure on Washington during sensitive trade negotiations.
The US chipmaker was found in violation of antitrust regulations after the acquisition of networking gear maker Mellanox Technologies, the State Administration for Market Regulation said after concluding a preliminary investigation.
Nvidia’s shares fell about 3% on Monday morning following the news report, while the stock is up by over 30% so far this year.
The surprise announcement emerged with US and Chinese officials heading into a second day of wide-ranging negotiations in Madrid over tariffs, which could shape the relationship between the world’s two largest economies.
Over the weekend, China announced that it was launching an anti-dumping investigation targeting a type of semiconductor manufactured by US companies, including Texas Instruments. Its shares fell 3% on Monday.
The regulator didn’t specify on Monday what sort of remedies it would seek from Nvidia, adding that it will investigate the company further. Nvidia didn’t immediately respond to an emailed request for comment outside of regular office hours.
Nvidia has this year found itself thrust into the center of delicate negotiations between Beijing and Washington, because of its central role in driving future technologies, including artificial intelligence.
The company dominates the market for the chips essential to building and operating AI services at companies from Meta Platforms Inc. to DeepSeek.
In December, Beijing opened a probe into Nvidia’s acquisition of Mellanox, aiming for the world’s most valuable company. Beijing approved the $7 billion acquisition deal four years ago, on condition that Nvidia not discriminate against Chinese companies.
The US government then implemented regulations that banned Nvidia from selling its most advanced AI chips to Chinese companies, including the H100, because of what it called national security concerns.
Nvidia redesigned its chips at least twice so they would comply with the American regulations, and it could sell them in the country.
