China Investigates Nvidia Corp

China has launched an investigation into Nvidia Corp. (NASDAQ: NVDA) over allegations of violating anti-monopoly regulations, according to a report by China Central Television on Monday.

Nvidia shares fell more than 2% in premarket trading.

The State Administration for Market Regulation is examining the chipmaker’s recent actions.

Nvidia, a dominant player in the AI chip market, is at the center of escalating tech competition between the US and China.

Restrictions imposed by Washington prevent Nvidia from selling its most advanced chips to Chinese firms, limiting their capacity to advance AI technologies, a move that has sparked criticism from Beijing.

Nvidia has endeavored to design AI chips that comply with US export rules while still providing Chinese clients the tools to develop key technology.