The U.S. government demanded a license to sell NVIDIA's AI chip 'H20' to China, and NVIDIA recorded $5.5 billion in related expenses
It has been revealed that the US government has sent a notice to NVIDIA stating that a license is required for the 'H20' that NVIDIA sells to China. NVIDIA has recorded $5.5 billion (about 785 billion yen) in expenses related to the license.
NVIDIA Corp. 8-K 2025-04-09
Nvidia says it will record $5.5 billion charge for H20 GPUs to China
https://www.cnbc.com/2025/04/15/nvidia-says-it-will-record-5point5-billion-quarterly-charge-tied-to-h20-processors-exported-to-china.html
The United States recognizes China's AI development as a threat to national security and restricts the export of high-performance semiconductors useful for AI development to China. NVIDIA has developed an AI processing chip called ' H20 ' with reduced performance to a level that can circumvent the restrictions and is selling it to China. NVIDIA's AI chips are also popular in China, and it is estimated that sales of H20 alone in China reached more than 2 trillion yen in 2024.
NVIDIA plans to sell 1 million H20 chips in China in 2024 and earn 2 trillion yen in sales, selling twice as many AI chips as Huawei to show its presence - GIGAZINE
However, it has become clear that the US government has strengthened semiconductor export controls to China and imposed licensing requirements on H20 as well. In a document submitted by NVIDIA to the Securities and Exchange Commission on April 15, 2025, it states, 'On April 9, 2025, the US government notified us that a license would be required to export H20 to China,' and 'the US government explained that it set the licensing requirements to address the risk that H20 will be used in Chinese supercomputers.' In addition, NVIDIA also states that it will 'record $5.5 billion (approximately 785 billion yen) in the first quarter of fiscal 2026 for H20 inventory, purchases, other reserves, etc.'
Regarding the H20 regulations, it was reported on April 9, 2024 that 'immediately after CEO Jensen Huang and President Donald Trump had a dinner, the H20-related regulations were lifted.' However, a document submitted by NVIDIA to the SEC also states that 'on April 14, 2025, we were informed that the license requirements would remain in effect indefinitely,' suggesting that a license-related notice was issued again a few days after the dinner.
NVIDIA CEO Jensen Huang pays 150 million yen to dine with President Trump, after which export restrictions on 'H20' chips are lifted - GIGAZINE
by Village Global
NVIDIA has announced that it will invest $500 billion (approximately 70 trillion yen) in the United States with its affiliates to build AI infrastructure. However, the Wall Street Journal points out that 'NVIDIA has not specified the production capacity it ultimately aims to achieve.' Reuters also reports that 'Trump tariffs will cause losses of more than $1 billion (approximately 140 billion yen) for American semiconductor manufacturing equipment manufacturers.'
NVIDIA to invest $500 billion in the U.S. over the next four years in collaboration with TSMC and Foxconn to develop purely American AI supercomputers - GIGAZINE
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in Hardware, Posted by log1o_hf