Tariff uncertainty related to the Trump administration has resulted in a staggering loss of over $1 trillion in market capitalization for the tech industry, particularly affecting AI companies. Amidst this chaos, market leaders like Nvidia and TSMC have seen significant declines in their stock prices. The ambiguity around whether GPUs will be exempt from tariffs is a critical concern, especially as complete electronic products are currently subject to tariffs. Experts believe that most AI GPUs are imported as servers from Taiwan, which would incur a 32% tariff. The lack of clarity is causing alarm in Washington while some in San Francisco remain unconcerned.
"I fully expect this to be a situation where Trump again gives companies he views as important/on his side/whatever a hall pass," said a source inside a major AI lab.
"Most AI GPUs are, I believe, imported not as chips but as servers, largely from Taiwan. So these would presumably face the general Taiwan tariff rate of 32%." - Chris Miller.
The core question is whether GPUs... are exempted from Donald Trump's sweeping tariffs, and the answer is startlingly ambiguous.
In San Francisco, sources tell us that this isn't a big deal. But in DC, people are panicking.
Collection
[
|
...
]