Technology company Nvidia said in a statement that it received a $5.5 billion charge after the US government imposed tariff restrictions on its H20 artificial intelligence chip to China, a key market for one of its most popular chips.
Nvidia's AI chips have been the focus of US export controls as officials seek to block the sale of high-tech chips to China in a race to dominate artificial intelligence (AI) technology.
After the restrictions were enforced, Nvidia began designing new chips that were developed close to the technological limits allowed by US regulations.
Nvidia shares fell about 6% in intraday trading.
A spokesperson for the US Department of Commerce announced late Tuesday that it had issued new licensing requirements for exports of chips including the Nvidia H20, AMD MI308 and other chips similar to them.
In a statement, the Commerce Department is committed to acting in accordance with the President's directive to protect national security and the economy.
For Nvidia, the H20 is its most advanced chip available for sale in China and is central to its efforts to stay involved with China's booming AI industry. – Reuters
