As the trade wars escalate between the US and China, Nvidia has found itself in the crossfire following accusations of possible anti-trust violations by the Chinese Government – per local media. The spotlight is on Nvidia’s acquisition of Mellanox – a conditional approval of which was granted, provided Nvidia would follow strict anti-monopoly guidelines. Following similar inquiries by the US Department of Justice (DoJ) a few months back, Nvidia is now taking flak from both sides.
The probe scrutinizes Team Green’s purchase of the Israeli-American networking firm Mellanox in 2020. Mellanox is the backbone of Nvidia's AI servers, allowing multiple GPUs within a DGX system to be connected via InfiniBand and Ethernet switches. The $7 billion acquisition was approved by Chinese authorities, stipulating that Nvidia will not use this partnership to discriminate against domestic firms. Likewise, Nvidia was obligated to notify rivals about upcoming products within 90 days.
