Introduction Of Nvidia
Nvidia is facing fresh hurdles in its ongoing efforts to supply AI technology to China, as the U.S. government has imposed a new export license requirement on its advanced H20 chips.
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In a filing on Tuesday, the semiconductor giant revealed it was notified by U.S. authorities that it must now obtain a license to export the H20 to China—effective immediately and indefinitely. The government cited concerns that the chip could be used in Chinese supercomputers, raising national security red flags.
As a result, Nvidia expects to take a $5.5 billion hit in related charges for its fiscal first quarter ending April 27, 2026. The news sent the company’s stock down about 6% in after-hours trading.
The H20 chip is the most powerful AI processor It is currently allowed to export to China under existing U.S. restrictions. Just last week, NPR reported that Nvidia CEO Jensen Huang may have tried to stave off tighter rules by lobbying during a dinner at former President Donald Trump’s Mar-a-Lago resort. Part of that effort reportedly included a pledge to invest in American AI infrastructure.
On Monday, Nvidia announced plans to invest several hundred million dollars over the next four years to manufacture some of its AI chips domestically. However, the announcement was vague, and analysts noted the lack of concrete details.
Calls for stricter controls on the H20 had been growing in recent months. Several U.S. officials pointed to reports that the chip was used to train powerful AI models developed by Chinese startup DeepSeek, including its R1 model, which made headlines in January for its advanced reasoning capabilities.
Nvidia has not responded to requests for comment.
