NVIDIA says it will record $ 5.5 billion for H20 graphics processing units to China

Nafidia He said on Tuesday that it would take a quarterly fee of about $ 5.5 billion linked to the export of H20 graphics processing units to China and other destinations. The share is 6 % in the extended trading.

On April 9, the US government told NVIDIA that it requires a license to export chips to China and a handful of other countries, the company said in file.

The disclosure is the strongest sign so far that the historical growth of NVIDIA can be slowed down by increasing export restrictions on its chips, which the United States government says can be used to create giant computers for military uses.

During President Biden administration, the United States has restricted the exports of artificial intelligence chips in 2022 and then updated the bases the following year to prevent the sale of the most advanced artificial intelligence treatments. H20 is the China Amnesty International chip that is designed to comply with the American export restrictions. It was generated by an estimated 12 billion to $ 15 billion in 2024.

The CEO of Nvidia Jensen Huang said at the end of the company Quarterly profits Call in February that the revenues from China have decreased to half of the pre -export control levels. Huang has warned that competition in China is growing, and for the second year in a row, Nafidia is listed Huawei As a competitor in his annual file.

China is the fourth largest region in NVIDIA through sales, after the United States, Singapore and Taiwan, according to the annual report of NVIDIA. 53 % of its sales went to American companies in their financial year that ended in January.

The H20 H100 and H200 AI chips are similar to the United States and other countries, but it has a slower connection speeds and a wide range width. It depends on a previous generation of artificial intelligence structure called Hopper that was presented in 2022. NVIDIA now focuses on selling its current generation of artificial intelligence chips, called Blackwell.

Dibsic, the Chinese company that unveiled the AI ​​model R1 earlier this year Fresh marketsH20 chips are used in their research.

In addition to the current Chinese export controls, NVIDIA also faces new restrictions on what can be exported starting next month, under “The rules of spreading artificial intelligence“The Biden Administration suggested for the first time.

Nafidia has Argue This controls its chips that suffocate competition and may lead to the erosion of competitiveness in technology. The company previously said that it had transferred some of its operations, including testing and distribution, outside China after the export controls of 2022.

At the company’s conference last month, when asked about the Chinese export controls, the CEO of Nvidia Jensen Huang said that the company is working to comply with the law, but also indicated that about half of the world’s artificial intelligence researchers are from China, and many who are working in the United States -based AI laboratories.

In the SEC file on Tuesday, NVIDIA says that the United States government said on Monday that the requirements of the H20 chips will be valid for the “unspecified future”.

NVIDIA reports on the results of the first quarter on May 28.

He watches: NVIDIA says we are asking for a license to export H20 products to China