The American chip manufacturer Nvidia expects high costs due to the export restrictions to China. These would be shown in the first quarter of $ 5.5 billion (4.83 billion euros), as the company announced on Tuesday evening.
The US government had previously imposed export checks for the H20 chip on China and for an indefinite period. This is mainly used for artificial intelligence. Nvidia’s share price fell by approximately six percent.
The Nvidia AI chips are the focus of export controls. The American authorities want to prevent the most modern chips from being sold to the People’s Republic. Shortly after the introduction of these checks, Nvidia started to develop special, closed chips that can legally be sold legally to China.
H20 is the strongest AI accelerator for China
Until the end, the H20 was the most progressive chip of Nvidia for sale in China. The group wants to benefit from the thriving Chinese AI sector. Chinese companies such as Tencent, Alibaba and the Tikk-Muttergesellschaft-bytedance had increased orders for H20 chips due to the flowering demand for cheap AI models of the Startups Deepseek, as Reuters’s news agency recently reported.
The H20 is not so fast when training AI models such as the Nvidia chips that are sold outside of China. However, it is considered competitive in important areas of application. The US government fears that the chips can be used to build a supercomputer. The H20 has lower computer capacities than other NVIDIA chips, but can still be connected to memory chips and other semiconductor at high speed.
So far, Nvidia has produced its processors in Taiwan. Against the background of possible American rates, the group is now a member of other technology companies that want to move part of their chip production to the US.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
