NVIDIA has warned that new US export restrictions on advanced AI chip sales to China could cost the company $5.5 billion, affecting inventory and commitments. The US government has implemented these licensing rules to prevent potential use of NVIDIA's chips in Chinese supercomputers, citing national security risks. This move marks an escalation in the ongoing US-China chip conflict, following previous restrictions on semiconductor sales. Simultaneously, NVIDIA is expanding its US operations and aligning with government initiatives to bolster AI infrastructure domestically.
NVIDIA estimates a $5.5 billion loss due to new US export restrictions on AI chips to China, aimed at blocking potential military applications of advanced technology.
The US license requirements for chip exports address risks that products could be diverted to supercomputing in China, highlighting ongoing national security concerns.
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