US bars Nvidia from promoting its H20 chips to China, firm says will price it $5.5 bn – Firstpost

Nvidia mentioned on Tuesday that it might incur $5.5 billion in fees after the US authorities restricted exports of its H20 synthetic intelligence chip to China, a key marketplace for the chip.

Nvidia’s AI chips have been a significant goal of US export controls, as officers goal to stop probably the most superior chips from reaching China in an effort to take care of a lead within the AI race.

Nvidia’s shares fell by about 6 per cent in after-hours buying and selling on Tuesday.

The US Commerce Division mentioned it’s introducing new licensing guidelines for exporting superior chips, together with Nvidia’s H20 and AMD’s MI308, to guard nationwide and financial safety.

AMD didn’t instantly remark, however its shares additionally dropped by 7 per cent after the announcement.

For Nvidia, the H20 is its most superior chip obtainable in China and performs a key function in its enterprise there. Main Chinese language tech corporations like Tencent, Alibaba, and ByteDance had been rising their orders for the chip, particularly to assist rising demand from AI startup DeepSeek.

The H20 chip isn’t as quick at coaching AI fashions as Nvidia’s high chips bought exterior China. Nevertheless, it performs properly in inference — the stage the place AI fashions give solutions to customers. Inference is rapidly turning into a very powerful a part of the AI chip market.

Nvidia CEO Jensen Huang lately mentioned the corporate is in a powerful place to steer this shift.