AI marks market tanks 14.6% as Nvidia faces antitrust probe in China

Artificial Intelligence-related cryptocurrencies saw a sharp decline, with the market cap of AI coins falling 14.6% in a day following reports of an antitrust investigation in China into AI chip-making giant Nvidia.

Near Protocol (NEAR), the largest AI coin by market cap, fell more than 8.6% over the past day, trading at $6.65 per coin at press time. Render (RENDER), Akash Network (AKT), FET, and The Graph (GRT) suffered losses of 9.7%, 9.6%, 8.6%, and 8% respectively during the same period.

Meanwhile, other AI tokens such as Bittensor (TAO), Arkham (ARKM), Livepeer (LPT), and Flux (FLUX) suffered much higher losses, between 12-16,% respectively. The losses across AI-related cryptocurrencies resulted in a 14.6% decline in the market cap of AI coins, bringing it down to $40.56 billion at the time of writing.

The AI ​​sector fell after China launched an investigation into Nvidia for suspected violations of the country's anti-monopoly law. The State Administration for Market Regulation also accused the US chip maker of breaking promises related to the 2020 acquisition of Israeli chip maker Mellanox Technologies.

The report had a big impact on Nvidia, which gets about 15% of its revenue from customers in China, according to its latest financial report. Nvidia shares fell 2.55%, closing at $138.81 on Tuesday in New York markets.

AI-related cryptocurrencies often respond to news about Nvidia. As previously reported by Crypto.news, several of these tokens suffered double-digit losses after Nvidia faced its biggest one-day market value drop on September 4 following an antitrust subpoena from the Department of Justice. SA.

This time, AI-related coins also faced setbacks as Bitcoin (BTC), the bellwether crypto asset, suffered a flash crash on December 10, briefly falling below $95,000 from an intraday high of $100,200 recorded the previous day.

The crash triggered a ripple effect across the broader crypto market, which fell 6.8% on the previous day, leading to a whopping $1.7 billion in liquidation.