Nvidia, a leading US chip manufacturer, has stated that it complies with all laws after a Chinese investigation found the company to be in breach of antitrust rules. This development is the latest in a intense technological competition between Beijing and Washington.
A spokesperson for Nvidia said, “We comply with the law in all respects,” in a written statement. The company also expressed its commitment to cooperating with relevant government agencies as they assess the impact of export controls on competition in commercial markets.
Nvidia, a California-based artificial intelligence chip leader, has become embroiled in the tense competition between China and the United States for dominance in the critical field of semiconductors. The US restricts Nvidia from exporting its most advanced products to China, and the company will pay the US government 15 percent of revenue from certain AI chip sales in the country.
In response, Beijing has expressed national security concerns about Nvidia chips, urging Chinese businesses to rely on local semiconductor suppliers instead. China’s top market watchdog launched an investigation into Nvidia in December and has now announced that the firm violated anti-monopoly laws, according to preliminary findings.
The statement did not provide details about Nvidia’s alleged wrongdoing, but vowed to conduct a further probe. This announcement came after officials from Beijing and Washington held trade talks in Madrid, where they reached a “framework” deal to resolve a key dispute over TikTok.
The deal calls for the Chinese-owned app to pass to US-controlled ownership. Top diplomats and defense chiefs from both nations also held back-to-back phone calls last week, which analysts believe could mark a step towards a meeting between leaders Donald Trump and Xi Jinping.
The investigation into Nvidia and the trade talks between China and the US highlight the ongoing tensions between the two nations in the technological sector. As the competition for supremacy in semiconductors continues to escalate, the outcome of the investigation and the trade talks remain significant for the future of the industry.
China’s announcement has significant implications for Nvidia and the broader tech industry, as it may lead to increased scrutiny of foreign companies operating in China. The US-China trade relations and the tech industry will likely continue to be closely watched as the situation develops.