AI Tokens Decline Amid China’s Investigation into Nvidia

China has launched an investigation into Nvidia over suspected violations of antitrust laws, according to Bloomberg, citing a report from the country’s Central Television.

The media reports that the focus is on the acquisition of Israeli high-speed networking and interconnects manufacturer Mellanox Technologies for $6.9 billion. Beijing approved the deal four years ago on the condition that Nvidia would not discriminate against Chinese companies.

Mellanox committed to providing competitors with information on new products within 90 days of their release to Nvidia. The American chipmaker agreed that Chinese chip developers would have the opportunity to ensure compatibility with the Israeli company’s technology.

The purchase of Mellanox allowed Nvidia to integrate advanced networking solutions into its graphics processors and data center tools, strengthening its position in the artificial intelligence and high-performance computing industries.

Following the news of the investigation, Nvidia’s shares fell by 2%.

Meanwhile, over the past day, tokens focused on artificial intelligence and big data projects have lost 5-10% in value. However, the weekly trend remains positive.

The decline is accompanied by a broader downturn in the rest of the crypto market. Many assets in the top 100 by market capitalization have shown dynamics similar to AI tokens.

In September, Nvidia’s shares recorded the largest single-day drop in history amid an investigation by the US Department of Justice into antitrust violations.

A year earlier, French authorities conducted raids on the company’s local office for similar reasons.