Nvidia Faces $5.5 Billion Charge Due to U.S. Export Restrictions on AI Chips

Nvidia announced it will incur $5.5 billion in charges after the U.S. imposed export restrictions on its AI chips to China. The restrictions affect Nvidia's popular H20 chip, creating uncertainties about future licenses. Meanwhile, Nvidia plans to invest in U.S.-based AI infrastructure to support local manufacturing.

Nvidia on Tuesday revealed a $5.5 billion charge as a consequence of U.S. government-imposed export restrictions on its cutting-edge H20 artificial intelligence chips to China.

The H20 chip, now requiring a license for export, has been central to recent U.S. export control measures aimed at restricting China's access to advanced AI technology.

This news follows Nvidia's strategy to invest $500 billion in U.S. AI server infrastructure, aligning with efforts to bolster domestic manufacturing capabilities.

(With inputs from agencies.)