The Donald Trump administration has banned Nvidia from exporting its new H20 chip to China, even though it was specifically designed to comply with previous US restrictions.
The Donald Trump administration has banned Nvidia from exporting its new H20 chip to China, even though it was specifically designed to comply with previous US restrictions.
This is reported by Bloomberg. According to Nvidia, US authorities have informed the company that the export of H20 chips to China will now require an export license for an indefinite period. The reason is fears that these chips could be used in Chinese supercomputers. The ban has already led to a 6% drop in Nvidia shares and, according to the company,
The blow to the H20 was particularly painful for Nvidia, as this chip was introduced as a workaround after the ban on the H800, the previous chip for the Chinese market. Although the H20 has reduced specifications, its power can be effectively used for developing AI models.
According to Bloomberg analysts, if the ban remains in force, Nvidia's annual losses could amount to $14–18 billion. The company's share of the data center market in China could drop to below 5%, as it was in early 2024 — before the large-scale launch of H20.
Despite the ban, Nvidia recently announced its intention to invest up to $500 billion in creating AI infrastructure in the US over the next four years.
