Nvidia Denies Supply Cut Rumors Amid Regulatory Scrutiny in China; Shares Down
Nvidia (NVDA, Financials) has addressed and discounted allegations floating around that it intends to cut down on or stop exporting goods to China. Emphasizing its emphasis on maintaining a strong presence and ongoing support of its consumers in the area, the business highlighted that these assertions are false and reiterated its commitment to the Chinese market.
This news comes in line with continuous inquiry by Chinese government officials, including an antitrust probe on Nvidia’s purchase of Mellanox Technologies. Reviewing the $6.9 billion agreement for possible competition issues adds to the company’s regulatory difficulties in one of its most important worldwide marketplaces.
Notwithstanding legal obstacles, Nvidia is growing in prominence in China by adding more staff, mostly for research and development on autonomous driving technology; the chip giant now employs about 200 people in Beijing, increasing its total workforce in China to almost 4,000, Bloomberg said.
With an eye on improving AI’s reasoning capacity for more accurate and complicated problem-solving, Nvidia’s CEO, Jensen Huang, has proposed the idea of “long thinking” in AI research. This development is projected to stimulate large expenditures in artificial intelligence infrastructure and applications.
This article first appeared on GuruFocus.
