The geopolitical tech battle between the U.S. and China has taken a sharp turn—and Nvidia is now squarely in the crosshairs. In a significant escalation, China’s State Administration for Market Regulation has launched an antitrust probe against Nvidia, claiming the chipmaker violated monopoly laws during its $7 billion acquisition of Israeli firm Mellanox Technologies. The regulator’s preliminary findings come at a delicate moment as U.S. and Chinese officials wrap up high-stakes trade talks in Madrid. Simultaneously, Chinese authorities have instructed domestic companies to halt purchases of Nvidia’s H20 chips and other AI hardware, further pressuring the firm’s China operations. Nvidia has responded by suspending H20 production and forecasts zero China revenue for the current quarter, implying a potential loss of up to $5 billion in sales. With China previously contributing $13.5 billion in trailing twelve-month revenue, this probe—and broader geopolitical tension—casts a long shadow over Nvidia’s prospects in its second-largest market.