Nvidia expects ban on chip exports to China to cost $5.5B

Nvidia now expects new US government restrictions on exports of its H20 chip to China will cost the company as much as $5.5 billion, Reuters reports.

Nvidia’s H20 chip is used for AI development; the US government has said it wants to restrict exports of the chip to China because of concerns it could be used to build a supercomputer. The H20 chip is the most advanced that Nvidia has been allowed to sell in China, though it is not as fast as the chips the company sells outside China.

AMD’s MI308 chip and its counterparts have also been restricted, a move the company estimates will cost it $800 million, Techcrunch reports.