Nvidia Denies Rumors of Supply Cuts Amid Regulatory Scrutiny in China; Sharing Down

Nvidia ( NVDA , Financials ) has spoken out and downplayed speculation that it intends to reduce or stop exporting goods to China. Reiterating its emphasis on maintaining a strong presence and continued support of its customers in the region, the business highlighted that these claims are false and reiterated its commitment to the Chinese market.

The news comes amid an ongoing investigation by Chinese government officials, including an antitrust investigation into Nvidia’s purchase of Mellanox Technologies. Reviewing the $6.9 billion deal for potential competition issues adds to the company’s regulatory difficulties in one of its most important global markets.

Despite the legal hurdles, Nvidia is growing prominently in China by adding more employees, especially for research and development of autonomous driving technology; The chip giant now employs about 200 people in Beijing, bringing its workforce in China to nearly 4,000, Bloomberg said.

With an eye to developing AI’s thinking method to solve more precise and complex problems, Nvidia’s CEO, Jensen Huang, proposed the idea of ​​”long-term thinking” in AI research. This development is expected to trigger significant spending on intelligence infrastructure and applications.

This article first appeared on GuruFocus.