Long before Donald Trump shook up global diplomacy, Sino-American tensions over technology were already boiling. Between economic sanctions and trade wars, Xi Jinping's country and the United States are competing for technological domination. Today, at the heart of this standoff, Nvidia is the target of a Chinese investigation, reigniting tensions in the semiconductor and artificial intelligence market.
Nvidia in Beijing's crosshairs
Nvidia, a company that sees AI as a winning bet, is currently under investigation for alleged violations of anti-monopoly law had the effect of a stone in the pond. This investigation, officially linked to the acquisition of Mellanox in 2020, seems above all to be a response to American restrictions on electronic chips.
Since 2022, theThe United States banned the export of A100 and H100 chips from Nvidia, causing a real headache for the company. These semiconductors, prized by Chinese AI research institutes and military organizations, are nevertheless essential in strategic sectors.
A O'Donnell's statementanalyst at TECHnalysis Research, sheds light on the limited short-term impact:
“ China can complain all it wants, but Nvidia is already no longer a major player in direct sales of advanced chips in this market. »
However, the friction does not stop there. THE semiconductors modified to meet Chinese standards were also quickly caught up with reinforced sanctions in 2023.
Please note:
- In 2023, China still represented 17% of Nvidia's turnover, compared to 26% in 2021;
- Before the restrictions, Nvidia held more than 90% of China's AI chip market.
This tense context between technological rivalries and commercial restrictions highlights that Nvidia is walking on eggshells by juggling political pressures and strategic innovations.
The battle of the AI chips: Nvidia strikes back
In the fight for artificial intelligence, Nvidia has not said its last word. If Beijing steps up its efforts to develop local alternativesnotably via Huawei, Nvidia continues to dominate the sector thanks to unrivaled technologies. However, the Chinese investigation could damage its image and limit its ability to collaborate with certain Asian partners.
The technological war is not just about businesses. Governments are also getting involved in the fight, as evidenced byChinese ban on exports of critical minerals like gallium and germanium. For Nvidia, the challenge is twofold: avoid being marginalized in the Chinese market while respecting the rules of its own country.
In 2020, the conditional approval of theacquisition of Mellanox Technologies by China already imposed strict obligations on Nvidia. These conditions included full transparency on prices and guarantees to avoid any abuse of dominant position. However, these measures did not prevent Beijing from setting up an investigation today.
The current climate, where each sanction seems to call for a responseaccentuates the challenges for Nvidia. The question is simple: will the company be able to maintain its dominant position in semiconductors and artificial intelligence despite an increasingly fierce trade war?
Finally, this affair highlights the growing tensions between economic giants. Nvidia's anti-competitive practices have also aroused the interest of the American authorities: last September, the DOJ attacked the company, sowing panic on AI cryptos.
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