Yesterday, Nvidia was under antitrust investigation.
Didn’t someone say before, ‘It’s like you’ve pouted your graphics card’?
Now the whole world is praising Nvidia, indicating that ‘Nvidia is going against the tide with the civilized world’.
In August 2024, the US Department of Justice launched an antitrust investigation into Nvidia, alleging that it may have abused its market dominance in selling artificial intelligence chips.
On December 7, 2024, Nvidia was once again subject to regulatory scrutiny by EU antitrust regulators.
On December 9, 2024, the State Administration for Market Regulation of Dongda launched an investigation into Nvidia in accordance with the law.
This wave is the investigation of Nvidia by the three major economies of North America, Europe, and East Asia. Shouldn’t Nvidia reflect on this?
The reason why Dongda launched an anti-monopoly investigation against it is because Nvidia violated the restrictive commitments made when acquiring Maxus in 2020. According to the requirements of the State Administration for Market Regulation when approving the acquisition, Nvidia had promised not to force bundling or attach unreasonable trading conditions when selling GPU accelerators and Maxus devices, and must continue to supply related products based on the principles of fairness, reasonableness, and non discrimination. However, since 2022, Nvidia has repeatedly cut off GPU products from the Dongda market, seriously violating these commitments.
In addition, it is not a problem for Europe and the United States to say that it “abuses its market dominance”, because the graphics card has been turned into a luxury item by Nvidia. A broken graphics card can buy several CPUs of the same level. Nvidia’s profit margin in 2020 was 26%, in 2021 was 36%, in 2022 was 16%, in 2023 was 49%, and in 2024 was 56%… This constantly rising profit margin is not a monopoly to gain huge profits. What is it?
Since Nvidia has been making a lot of money in the past two years, Huang Renxun has replaced Musk as the new “leader” in the minds of the big spenders… Little do they know, people like Huang are the easiest to go from being stubborn to being stuck at both ends.
Dongda still has a good business environment and is too gentle towards enterprises. If it were in the United States, companies like Nvidia are likely to be dismantled and forcibly acquired, while people like Huang Renxun are likely to be arrested on charges in the United States, squeezing out all the money bit by bit and ultimately giving up control of the company.
The Dongda market accounts for 20% of Nvidia’s total sales share and is Nvidia’s largest first party market. According to the logic of liberals, ‘if you offend the first party, you still want to be good’?
Nowadays, the big players are using the same clich é s, saying, ‘If it’s a big deal, Nvidia will withdraw from Dongda, and you won’t be able to use high-performance chips in the future.’ Firstly, Dongda generally doesn’t care about Nvidia’s products being called ‘chips’, we call them’ GPU ‘,’ graphics card ‘, or’ computing card ‘. Secondly, Nvidia has long followed the United States and banned the sale of high-performance computing cards at Dongda. What’s the point of being pretentious about something that doesn’t exist in the first place? Finally, it’s better not to come, and give business and orders to Huawei Ascend and Moore Thread.
The technical difficulty of GPU hardware is not high, but the difficulty lies in the accompanying GPU driver. However, software iterations are faster than hardware. Daiko has no culture and doesn’t understand these things. She doesn’t even know how to change her language skills.
Temporary performance lag? What are you afraid of? In the field of consumer electronics, performance is all supported by the market. You may not know that the MTTS70 graphics card from Moore’s Thread can already run “Black Myth: Wukong”. Although it only has 10-20 frames per second, it is not impossible to open or play. Other mainstream games can do it. This is a breakthrough from scratch… By the way, this card is only sold for 999. Can you guess how long it would take for Nvidia to completely leave the Dongda market and produce top-notch graphics cards domestically?
As for AI computing cards, Huawei Ascend has long been used in China. The principle of this thing is not complicated, the computing power is simple and rough, and there is no need for any “high process”. It is just a few more Ascend computing cards. The sales of Huawei Ascend servers are expected to reach 50 billion to 60 billion yuan in 2024, and may reach 100 billion yuan next year. Under the independent demand for computing power, Ascend has already occupied about 79% of the market share of domestic intelligent computing centers.
In this field, Nvidia does not have any mastery of the Three Body Black Technology… The AI big model in the United States has not only failed to widen the gap with Dongda, but has also been widened by Dongda’s extremely powerful power, computing power, and industrial engineering applications.
Yesterday, a friend from the industry just came back from a meeting and told us that the vast majority of technical difficulties no longer exist, and many fields have even achieved a small number of leading positions. The current bottlenecks and shortcomings have actually been solved… What we need to worry about now is that there are too many companies in various regions doing these things.
This is the confidence of today’s anti-monopoly investigation.
Don’t forget, Dongda is not only the world’s largest industrial country, but also the world’s largest physical consumer country. It engages in close combat with such an economy, playing with blockades and sanctions. Do you think the wheels of history are not rolling fast enough?
Do you still remember a few days ago, in early December, multiple associations in the Chinese semiconductor industry issued a statement titled ‘American chips are no longer safe and reliable, cautious procurement’? Semiconductor Association, Communication Association, Automobile Industry Association and Internet Association all spoke at the same time, indicating that the industry has fully reached consensus and has the confidence to “fight back”.
Since the trade war, many may not know to what extent we have achieved in the field of “localization substitution”? Many complex devices, machines, and systems have now achieved “not a single screw from the United States”, and in most fields, they have achieved “independent and controllable core technology”.
How many technologies and equipment were blocked by the Vanessa Agreement decades ago? How many technologies have we broken through in the past few decades? How many technologies and equipment have been removed from the ’embargo list’ and become ‘low-end manufacturing’ and ‘sunset industries’?
Technology is not mysticism, technology is materialism, and technological development is formed by three main factors: the intersection of information and the computing power of the human brain, as well as the stacking of materials. However, time is not so important.
The technological advantages of European and American countries for one or two hundred years can be surpassed by China in about twenty years with the investment of manpower, provided that there is no shortage of funds and materials. Many of their technologies, combined with the total manpower, materials, and information invested in one or two hundred years, are not as advanced as China’s investment in more than a decade.
China’s size and division of labor are more scientific and efficient than Europe and America. Nowadays, China’s human brain computing power is overwhelming the world, and its abundant resources are also overwhelming the world. The information gap has been smoothed out… Why can’t we surpass them?
To put it bluntly, two years ago, Nvidia may still have the bargaining power, but now it’s too late.
The world is materialistic, and the development of things is not subject to human will. In the past few decades, everything Dongda has done, which one doesn’t seem “difficult to climb the sky”? But which one is not ‘taken for granted’ when reviewed afterwards? The same goes for semiconductors!
In two or three years, no one will discuss “chips” or “graphics cards” anymore, and everyone will forget about this “outdated production capacity” and “sunset industry”.
