A regulator has accused NVIDIA of violating China's antitrust laws over its acquisition of chipmaker Mellanox. In its preliminary findings of an investigation it commenced in December, the State Administration for Market Regulation (SAMR) claimed that the company breached both national regulations and the conditional terms China outlined when it rubberstamped the $6.9 billion takeover. The SAMR hasn't announced any penalties yet, as the investigation will continue.The SAMR is said to have determined its preliminary findings several weeks ago. According to Financial Post sources, the regulator held off from releasing its statement until now, as trade talks with the US take place in Madrid, with the idea of giving Chinese officials more leverage. (Those talks have so far resulted in a framework agreement for TikTok.)NVIDIA and Mellanox announced the buyout back in 2019. China approved it in April the following year on the condition that NVIDIA continued to supply GPUs and interconnect products to the country and adhere to fair, reasonable, and non-discriminatory principles," per the South China Morning Post.Last month, it was reported that China was discouraging companies in the country from buying NVIDIA's H20 chips pending a national security review. Officials were said to have taken offense at remarks from Howard Lutnick, the US commerce secretary. After the US allowed NVIDIA to start offering chips to China again in July following a three-month ban, Lutnick said the company wasn't going to be selling its most cutting-edge tech there."We don't sell them our best stuff, not our second best stuff, not even our third best. The fourth one down, we want to keep China using it," he told CNBC. "The idea is the Chinese are more than capable of building their own. You want to keep one step ahead of what they can build, so they keep buying our chips. You want to sell the Chinese enough that their developers get addicted to the American technology stack."This article originally appeared on Engadget at https://www.engadget.com/big-tech/china-says-nvidias-mellanox-acquisition-violated-antitrust-law-200409929.html?src=rss

NVIDIA will invest up to $100 billion in OpenAI as the ChatGPT maker sets out to build at least 10 gigawatts of AI data centers using NVIDIA chips and systems. The strategic partnership announced today is gargantuan in scale. The 10-gigawatt buildout will require millions of NVIDIA GPUs to run OpenAI's next-generation models. NVIDIA's investment will be doled out progressively as each gigawatt comes online.The first phase of this plan is expected to come online in the second half of 2026, and will be built on NVIDIA's Vera Rubin platform, which NVIDIA CEO Jensen Huang promised will be a "big, big, huge step up," over the current-gen Blackwell chips.NVIDIA and OpenAI have pushed each other for a decade, from the first DGX supercomputer to the breakthrough of ChatGPT," said Jensen Huang in a press release announcing the letter of the intent for the partnership. Compute infrastructure will be the basis for the economy of the future, and we will utilize what we're building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale," said Sam Altman, CEO of OpenAI.

The Southern District of Texas announced the seizure of more than $50 million in NVIDIA GPUs bound for China in violation of US export laws. Authorities arrested two businessmen, one of them the owner of a Houston company, accused of smuggling the chips used to train and run AI models.Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our Nation's security by funneling cutting-edge AI technology to those who would use it against American interests," said US Attorney Nicholas J. Ganjei. The investigation had been ongoing since at least last year and centers on the illicit export or attempted export of at least $160 million worth of NVIDIA H100 and H200 GPUs. The H200 chips are the very same that the Trump administration announced a revenue-sharing agreement for today, allowing NVIDIA to sell them to approved customers" in China.The smuggling operation used a combination of falsified paperwork, purposefully misclassified goods, straw purchasers and even removing the NVIDIA labels on GPUs to ship them to both mainland China and Hong Kong. The conspirators face between 10 and 20 years in prison if convicted.The H200 chips in question are more powerful than the H20 chip specifically designed to comply with US export restrictions. Production of the H20, however, was reportedly halted shortly after the Trump administration struck a revenue-sharing deal with NVIDIA, after which China began heavily discouraging local companies from buying them.Illicit sales to China are nothing new and occur against the backdrop of an AI technology race and tight export controls. NVIDIA is still prevented from selling its highest-end Blackwell chips to China, with the US hoping to keep an edge over foreign competition.This article originally appeared on Engadget at https://www.engadget.com/big-tech/texas-authorities-have-made-multiple-arrests-in-an-nvidia-gpu-smuggling-operation-144749526.html?src=rss