Thursday, 17 April, 2025

Nvidia Faces $5.5 Billion Charge as U.S. Imposes Export License Requirement on H20 AI Chips to China

The U.S. government has mandated that Nvidia obtain export licenses for its H20 AI chips when selling to China, citing concerns over potential use in Chinese supercomputers. This indefinite requirement is expected to cost Nvidia $5.5 billion in the first quarter of fiscal year 2026. The H20 chip, Nvidia's most advanced model available in China, had been utilized by firms like DeepSeek for AI development. Following the announcement, Nvidia's stock declined by approximately 6%.