Nvidia CEO Jensen Huang, on the Computex commerce present in Taipei on Monday, mentioned the Trump administration’s ban on its H20 chips for China has price the corporate $15 billion in gross sales.
Throughout an interview with know-how analyst Ben Thompson, Huang known as the ban “enormously pricey” and “deeply painful.” He pointed to the $5.5 billion in prices the corporate expects to see in its first fiscal quarter as a result of ban.
“No firm in historical past has ever written off that a lot stock,” he mentioned. “[N]ot solely am I shedding $5.5 billion — we wrote off $5.5 billion — we walked away from $15 billion of gross sales and possibly … $3 billion price of taxes.”
Wall Avenue analysts had projected that Nvidia may see anyplace between a $10 billion and $16 billion hit to income over the approaching quarters from the latest export ban on its H20 chips.
Nvidia has repeatedly up to date its chips for the Chinese language market prior to now a number of years to adjust to ever-tightening US commerce restrictions, making the chips much less and fewer highly effective with every new iteration.
The most recent ban on exports of its chips final month got here simply as the US authorities mentioned it was investigating Nvidia over using its AI chips in China. It cited the discharge of an inexpensive AI mannequin from Chinese language startup DeepSeek powered by Nvidia’s prior-generation H800s, that are presently banned from export to the nation.
Huang implied Nvidia cannot make one other AI chip with its Hopper structure for China beneath the present restrictions: “[T]hat’s the restrict of what we will do to Hopper, and we have reduce it all the way down to there’s not a lot left to chop,” he mentioned. “Anyone who thought that one chess transfer to in some way ban China from H20s would in some way reduce off their skill to do AI is deeply uninformed.”
He added that the China AI market is price $50 billion a yr. “China’s doing unbelievable, 50% of the world’s AI researchers are Chinese language and you are not going to carry them again, you are not going to cease them from advancing AI,” he informed Thompson, who revealed the interview in his publication, Stratechery.
Final week, the Monetary Occasions and Reuters mentioned Nvidia is trying to open a analysis and improvement middle in China, which an individual accustomed to the matter confirmed in an electronic mail to Yahoo Finance.
Learn extra: How does Nvidia become profitable?
Simply as Nvidia’s H20 chips have been banned, Chinese language tech large Huawei was speeding to fill the hole. Huawei is reportedly set to ship chips extra highly effective than Nvidia’s H100s.
Nvidia CEO Jensen Huang, on the Computex commerce present in Taipei on Monday, mentioned the Trump administration’s ban on its H20 chips for China has price the corporate $15 billion in gross sales.
Throughout an interview with know-how analyst Ben Thompson, Huang known as the ban “enormously pricey” and “deeply painful.” He pointed to the $5.5 billion in prices the corporate expects to see in its first fiscal quarter as a result of ban.
“No firm in historical past has ever written off that a lot stock,” he mentioned. “[N]ot solely am I shedding $5.5 billion — we wrote off $5.5 billion — we walked away from $15 billion of gross sales and possibly … $3 billion price of taxes.”
Wall Avenue analysts had projected that Nvidia may see anyplace between a $10 billion and $16 billion hit to income over the approaching quarters from the latest export ban on its H20 chips.
Nvidia has repeatedly up to date its chips for the Chinese language market prior to now a number of years to adjust to ever-tightening US commerce restrictions, making the chips much less and fewer highly effective with every new iteration.
The most recent ban on exports of its chips final month got here simply as the US authorities mentioned it was investigating Nvidia over using its AI chips in China. It cited the discharge of an inexpensive AI mannequin from Chinese language startup DeepSeek powered by Nvidia’s prior-generation H800s, that are presently banned from export to the nation.
Huang implied Nvidia cannot make one other AI chip with its Hopper structure for China beneath the present restrictions: “[T]hat’s the restrict of what we will do to Hopper, and we have reduce it all the way down to there’s not a lot left to chop,” he mentioned. “Anyone who thought that one chess transfer to in some way ban China from H20s would in some way reduce off their skill to do AI is deeply uninformed.”
He added that the China AI market is price $50 billion a yr. “China’s doing unbelievable, 50% of the world’s AI researchers are Chinese language and you are not going to carry them again, you are not going to cease them from advancing AI,” he informed Thompson, who revealed the interview in his publication, Stratechery.
Final week, the Monetary Occasions and Reuters mentioned Nvidia is trying to open a analysis and improvement middle in China, which an individual accustomed to the matter confirmed in an electronic mail to Yahoo Finance.
Learn extra: How does Nvidia become profitable?
Simply as Nvidia’s H20 chips have been banned, Chinese language tech large Huawei was speeding to fill the hole. Huawei is reportedly set to ship chips extra highly effective than Nvidia’s H100s.
