NVIDIA Faces Export Restrictions on H20 AI Chips
According to an SEC filing by NVIDIA, the US government now requires companies to obtain a license to export H20 integrated circuits and other products that achieve similar performance benchmarks. This license requirement aims to prevent these products from being used in or diverted to supercomputers in China. The restriction isn’t limited to mainland China; NVIDIA will also need permission to sell H20 chips to Hong Kong, Macau, and countries with a D:5 designation under US Arms Embargo Countries.
The H20 chips are currently the most advanced products that NVIDIA can sell to select international markets under current laws, with capabilities for artificial intelligence applications. Last week, it seemed NVIDIA might receive a reprieve on new restrictions, but the license requirement is now expected to be in effect indefinitely.
As a result of these restrictions, NVIDIA expects to report approximately $5.5 billion in charges related to inventory, purchase commitments, and related reserves associated with H20 circuits in their current fiscal quarter’s results.
