NVIDIA announced that it would accuse the US government of $ 5.5 billion after banning its H20 AI chips exports to China. The American company experienced a decline in the same shares as AMD, which is also facing difficulties with the same embarrago about the Mi 308 chip.
The US Department of Commerce “is committed to acting on the President’s instructions to protect our national and economic security,” a spokesperson of the department said that a spokesman that oversees the US export control.
The H20 AI chip in NVIDIA portfolio is designed to customers in China, where the AI ​​industry is booming. Companies that have increased their orders for H20 include Tencent, Alibaba, and bytedance, all major Chinese groups.
NVIDIA H20 is less powerful than some other chips for markets outside China, as it is mainly focused on estimated, which relates to the speed on which AI model reactions provide. NVIDIA has already adjusted the chip architecture in response to the restrictions and sanctions imposed by the previous biden administration, but it seems that this effort no longer matters.
Jensen Huang, Nvidia CEO
The US government indicated a risk about the use of H20 in the supercomputer. Although the chip has reduced computing power, adding several memory chips can still lead to high speed. A Nonpartison Think Tank in Washington, DC reported that Tencent has already deployed H20 chips to train its model, which can bypass the export ban and mainly benefit Chinese companies.
NVIDIA said on Tuesday that the government informed the company that the H20 chip would require a license for export, followed by a few days later after a clarification that those rules would have indefinitely impact.
NVIDIA stated that a fee of $ 5.5 billion belongs to H2O products for inventory, procurement commitments and related reserves.
Reuters said that this news aligned with the Trump administration’s push for the local construction of the Trump administration following the announcement of a company of commitment to the construction of AI servers in the United States over the next four years.
