Nvidia hit with China probe in global tech war escalation

China has opened a probe into Nvidia over suspicions that the U.S. chipmaker broke anti-monopoly laws around a 2020 deal, taking aim at the artificial intelligence heavyweight as Washington ramps up sanctions.

The State Administration for Market Regulation opened an investigation into the company’s recent behavior as well as the circumstances surrounding the acquisition of Mellanox Technologies, the government said in a statement on Monday. Beijing gave approval for the deal four years ago, on condition that Nvidia not discriminate against Chinese companies.

The move against Nvidia is Beijing’s latest riposte to escalating U.S. technology curbs, coming just a week after the Chinese government banned exports of several materials with tech and military applications. Nvidia’s market value has ballooned this year on demand for chips that can run AI programs, making it one of the most valuable publicly traded companies and China’s largest corporate target in the tech trade war so far.