Nvidia has warned that tighter US government controls on exports of its artificial intelligence chips will cost it an additional $5.5 billion due to licensing requirements for “indefinite future”. The new export licensing rules pertain to the company’s H20 integrated circuits and AMD’s MI308 chips, citing risks they may be used in or diverted to a supercomputer in China. This move has led to a 6% drop in Nvidia’s shares, as well as rival chipmaker Advanced Micro Devices. Asian technology giants such as Advantest, Disco Corp., and Taiwan’s TSMC have also seen significant declines. The new controls follow concerns over how China might use advanced AI chips to develop its own capabilities, with the emergence of the DeepSeek AI chatbot in January renewing these worries.
Source: https://apnews.com/article/ai-nvidia-amd-chips-trump-controls-0e6fbdc1ad8b54d8ecc704393c2a1558