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US government imposes license requirement on Nvidia H20 exports
Semiconductor giant Nvidia has been informed by the U.S. government that it will need a license to export its H20 AI chips to China indefinitely. This decision was made due to the “risk that the [H20] may be used in a supercomputer in China.”
According to Nvidia’s filing, the company anticipates related charges of $5.5 billion in its Q1 2026 fiscal year, which ends April 27. The company’s stock dropped by around 6% in extended trading following the announcement.
The H20 is the most advanced AI chip that Nvidia can export to China under the current and previous export rules. This move may have significant implications for the company’s business operations.
Recently, CEO Jensen Huang allegedly committed to investing in AI data centers in the U.S. during a dinner at President Donald Trump’s Mar-a-Lago resort. However, pundits were quick to point out that the company’s commitment lacked specific details.
In light of this development, Nvidia has declined to comment on the matter.
The new export controls have been imposed due to concerns over the potential use of the H20 chip in a supercomputer in China. The decision may be seen as an effort by the U.S. government to strengthen its control over AI exports and limit the spread of advanced AI technologies abroad.
It is unclear how this development will affect Nvidia’s future business plans, particularly those related to the Chinese market.
Source: https://techcrunch.com/2025/04/15/us-government-imposes-license-requirement-on-nvidia-h20-exports/
