NVIDIA founder, President and CEO Jensen Huang talks about the future of artificial intelligence and its impact on energy consumption and production at the Bipartisan Policy Center in Washington, D.C., on September 27, 2024.
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NVIDIA The chip maker’s shares came under pressure on Monday after Chinese regulators said they were investigating possible violations of China’s antitrust laws.
The stock price fell about 2% before the market opened.
The Chinese government said on Monday that the State Administration for Market Regulation has launched an investigation into the chipmaker’s acquisition of Mellanox.
“Recently, due to Nvidia’s alleged violation of China’s antitrust laws and the State Administration for Market Regulation’s restrictions on Nvidia’s acquisition of Mellanox shares… the State Administration for Market Regulation is investigating Nvidia in accordance with the law,” according to a statement translated by CNBC.
Nvidia did not immediately respond to a request for comment.
The news comes amid growing competition between the United States and China for chipmaking capabilities, with the Biden administration last week announcing a final set of restrictions on semiconductor tool makers.
In recent years, the United States has tightened restrictions on chip sales in the second-largest economy, banning Nvidia and other major semiconductor companies from selling its most advanced artificial intelligence chips to limit the country’s efforts to build up its military capabilities.
More than two years after ChatGPT debuted, shares of the artificial intelligence chip darling have outperformed the market this year, rising nearly 188% as investors ramp up bets on the industry. Stocks and the broader technology sector also helped push the market to new highs.
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—CNBC’s Evelyn Cheng contributed reporting
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