Nvidia to take $5.5bn hit as US clamps down on exports of AI chip to China

Unlock the editor’s digest in free

FT editor Raula Khalaf selected his favorite stories in this weekly newsletter.

Nvidia says they are expected to push $ 5.5bn after the capacity of exporting artificial intelligence chip to China in the US Silicon Valley Group.

The team said in a controller filing late on Tuesday that the H20 chip, which was created to adhere to export controls for the Chinese market, which already prevented China’s most powerful chips sales, would now require a special license to sell to the country’s customers.

Nvidia The US government has filed in the case that this step was necessary to address the risk of being used in the H -20 “China Super Computer”.

This group says that it will charge $ 5.5bn from 2 April April “Inventory, Promise of Purchase and Related to H20 Products for Related Reserves”. Nvidia shares in trading have dropped by 4 percent after Tuesday.

This move identifies the latest example of how Donald Trump’s administration is using Tariff And other trade barriers to raise pressure on Beijing. The US president has already raised tariffs on Chinese imports to 145 percent, though some customers have received temporary recovery of electronics.

This is a developing story