NVIDIA says that the United States will restrict sales more artificial intelligence chips to China
Nafidia said on Tuesday that the United States government has prevented the sale of some artificial intelligence chips to China without a license and will start requesting a license for future sales.
Restrictions are the first major limits of President Trump’s administration in semiconductor sales abroad. It raises the possibility of evaporation of NVIDIA sales of China in the coming months, which puts an end to a company that contracted with the United States, as the United States exported chips exports on its geopolitical rival.
NVIDIA fought hard to maintain sales to China in the face of the increasing US government restrictions. In 2022, the Biden administration imposed bases to limit the export of the best AI chips in NVIDIA to China. NVIDIA was received by modifying one of the leading artificial intelligence chips, H100, so that its capabilities decrease under the thresholds of the US government. The resulting H20 chip is a special product in China.
The company said that NVIDIA will take a fee of $ 5.5 billion for its revenues in the current quarter due to the H20 stocks, purchase obligations and relevant reserves, which you will not be able to sell or fulfill in the wake of the new rule of the government.
Delion is a larger strategic blow than that finance. NVIDIA, which dominates the semiconductor market used to build artificial intelligence systems, is the sale of China’s vital chips for its future. If you withdraw from the market, he was afraid to give up China’s leading sales in artificial intelligence funds, Huawei, and that Huawei would begin challenging sales around the world.
“This kills NVIDIA to a main market, and they will lose traction in the country,” said Patrick Moraid, MOUR Insights & Strategy. “Chinese companies will turn into Huawei.”
NVIDIA refused to comment. The company’s share price fell by more than 5 percent in trading after Tuesday hours.
A spokesman for the Ministry of Commerce, Beno Cass, said on Tuesday that the administration issued new export licensing requirements for NVIDIA H20; Slide of advanced small devices, Mi308; And its equivalent.
Mr. Cass said: “The Ministry of Trade is obligated to work on the guidance of the president to protect our national and economic security.”
NVIDIA revealed the change in a regulatory file on Tuesday, a day after the company’s victory Praise the White House A promise to invest $ 500 billion in Amnesty International Infrastructure in the United States. The company said it will start making servers in a factory in Houston and works with Packaging companies in Arizona.
However, these promises were submitted after the Trump administration informed Nafidia separately on Wednesday that it would start asking for a license to sell any chips to China, Nafidia said in its organizational file. The company said on Tuesday that the Trump administration had followed this notice to say that the licensing requirements “will be valid for the unspecified future.”
This change also comes after weeks of Ginsen Huang, CEO of NVIDIA, at Mr. Trump at Mar Lago dinner cost a million dollars per person. In the aftermath of that meeting, there were reports that the United States government would enter its plan to restrict NVIDIA sales to China.
Since Mr. Trump took office, his administration has promised to suppress the support of the United States for Chinese artificial intelligence companies. Chinese Deepseek rocked Washington in recent months when it has released a new system for Amnesty International, which he said was created for a small part of the cost that American companies were spent to train artificial intelligence.
During his nomination session, Trade Minister Howard Mr. Lootnick said that the United States should stop allowing Chinese companies to use American technology, including NVIDIA, “to compete with us.”
Last year, NVIDIA recorded $ 17 billion sales to China. The company’s business has contracted as a total percentage of its revenues in the face of the restrictions of the US government. China sales, which were about five NVIDIA revenues in the fiscal year 2023, fell to 13 percent last year.
In submitting it, NVIDIA has not specified whether the licensing requirements will affect future sales. Analysts say it is because it creates the H20 chip by suffocating the performance of the H100 chips, it contains only limited stocks. You can sell H100 chips that have not been manipulated with American and European companies.