Nvidia is facing new U.S. export controls regarding its H20 AI chips, which require a license for exports to China indefinitely. This decision stems from concerns that these chips could be utilized in Chinese supercomputers. The company foreshadows $5.5 billion in charges related to these restrictions for the first quarter of fiscal year 2026. Furthermore, the H20 chip is Nvidia's most advanced AI offering exportable to China, igniting debate over U.S. technology security. Despite prior discussions on potential exemptions, government officials continue to push for stronger export measures.
The U.S. government informed Nvidia that it now requires a license to export its H20 AI chips to China, highlighting concerns over their potential military usage.
Nvidia expects to incur approximately $5.5 billion in related charges due to these new export controls, significantly impacting its fiscal outlook for Q1 2026.
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