The latest United States restrictions to China have managed to make a dent in Nvidia, the chips manufacturer that, so far, has better managed to make profitable the ‘boom of the artificial intelligence business (AI). The brand based in California on Tuesday notified the US regulatory of financial markets that awaits a blow 5,500 million dollars This quarter due to a new license requirement on the main chip that can be legally sold in China.
The announcement occurs after US officials communicated last week to NVIDIA that must obtain licenses to export their H20 chips to China due to the concern that they can be used in supercomputers of that country, said Silicon Valley’s company in a presentation before the Bag and Securities Commission (SEC).
“The results of the first quarter are expected to include up to 5.5 billion dollars of positions associated with H20 products per inventory, purchase commitments and related reserves,” said Nvidia in the notification, collects Europa Press.
Nvidia’s actions, which have already experienced great volatility since the announcement of Trump tariffs on April 2, fell more than 6% in operations after the closure of the market.
Specifically, the new American licensing granting standard applies to NVIDIA graphic processing units (GPU) with a bandwidth similar to that of H20. So far, this was the most powerful chip than the American technology could market in the country.
It should be remembered that the United States had already prohibited exports to China of the most sophisticated GPUs in NVIDIA, designed to feed high -end artificial intelligence models. The country’s goal is to maintain its advantage in AI technology. AND Without chips it is impossible to train solutions like chatgpt.
Nvidia has been informed that the license requirement for H20 It will last indefinitely, according to the notification. The company was notified about the restriction on April 9 by state officials, and has not had time to warn at least some of its main clients in China, according to Reuters.
China is one of its most important markets for Nvidia, where it got 13% of its total sales during the last fiscal year. Since the launch of the chip in the late 2023, the company had obtained H2O orders worth 18,000 million dollars from the country.
It is expected that Nvidia’s inability to continue marketing this component in China to benefit local technological technological ones such as Alibaba, Tencent or Bytedance, Tiktok matrix, which have been working on the development of chips for some time capable of competing with the most powerful that the American brand manufactures.
