Nvidia CEO Jensen Huang traveled to Beijing after major regulatory changes emerged that would affect the company’s Chinese operations. The China Council for the Promotion of International Trade extended an invitation to Nvidia CEO Jensen Huang as the US government started requiring licenses for exporting H20 AI chips to China which will cost the company $5.5 billion.
The H20 chip produced $15 billion in revenue during the previous year because it met previous US restrictions. The new export restrictions forced Nvidia to announce both a $5.5 billion quarterly loss and a 6% decline in after-hours market value. The Chinese market stands as Nvidia’s fourth-largest customer base after customers from the United States, Singapore and Taiwan.
The H20 chip based on Nvidia’s Hopper AI architecture operates at a slower pace than the H100 and H200 chips which are available in other markets. The company has redirected its efforts toward developing its Blackwell-series chips.
The United States government has permanently extended export licensing requirements while it develops additional regulatory measures. The measures implemented by the US threaten to diminish American technological dominance across the worldwide market.
