Nvidia's Stock Drops as China Launches Antitrust Probe into AI Chipmaker

Home AI News Nvidia's Stock Drops as China Launches Antitrust Probe into AI Chipmaker

Nvidia's stock price went down on Monday because China said it is investigating the American chip company for possibly breaking anti-monopoly laws. The investigation is mainly about Nvidia's purchase of a company called Mellanox for $6.9 billion in 2019. Despite this, Nvidia's stock has still gone up a lot this year, thanks to the high demand for its chips in artificial intelligence. Many big tech companies use Nvidia's chips and data centers to train and run their AI systems, making Nvidia one of the largest companies in the stock market.

Nvidia does a lot of business in China, where about 16% of its income comes from. In the last quarter, Nvidia made $35.08 billion, which is 94% more than the $18.12 billion it made a year ago. Its profits were also much higher. Although it didn't say how much it made from China, Nvidia's success has made it one of the world's most valuable companies, with a market value of $3.5 trillion at one point.

This investigation is part of China's actions against American tech companies. There were also reports that the U.S. government is looking into whether Nvidia is using its power in the chip market unfairly. Experts say that China's investigation is not just about what Nvidia is doing in China, but also a way to show the incoming Trump administration that China wants to be in control of future relations. Nvidia will need to change its strategy in China to deal with the uncertainty of doing business there.

Homeland Security Unveils Framework for AI Use in Critical Infrastructure

New York State to Oversee AI Usage with New Legislation

Most people like

Stable Diffusion Online

5.8K

Create stunning photorealistic images from text effortlessly with the Stable Diffusion model. It's fast, intuitive, and perfect for users of all skill levels.

AI text-to-image generator AI Art Generator

Storykit

66.6K

Elevate Your Content: Transforming it into High-Performing Video In today's digital landscape, video content reigns supreme, driving engagement and boosting reach across platforms. By transforming your written material into compelling videos, you not only enhance audience interaction but also maximize your content's visibility. Let’s explore how to effectively convert your content into captivating, high-performing videos that resonate with viewers and elevate your brand presence.

video creation Text to Video

Slite

353.7K

Discover Slite, an AI-driven knowledge base designed for seamless access to reliable company information at your fingertips.

AI-powered knowledge base AI Knowledge Base

Robin AI

48.1K

Streamlining Contracts for Speed and Simplicity

contract management AI Contract Management

Find AI tools in YBX