Tech shares fall after Nvidia says new US controls on exports of AI chip will cost it $5.5 billion – AP News
BANGKOK (AP) — Shares in computer chipmakers slumped Wednesday after Nvidia said tighter U.S. government controls on exports of computer chips used for artificial intelligence will cost it an extra $5.5 billion.
The company, which announced Monday that it will produce its artificial intelligence super computers in the United States for the first time, said the government told it that its H20 integrated circuits and others of a similar bandwidth would be subject to the licensing requirements for the “indefinite future.”
In a regulatory filing, Nvidia said the government said the controls addressed risks that the products “may be used in or diverted to, a supercomputer in China.”
Shares of Nvidia and rival chipmaker Advanced Micro Devices each fell about 6% in morning trading Wednesday.
AP AUDIO: Tech shares fall after Nvidia says new US controls on exports of AI chip will cost it $5.5 billion
AP correspondent Donna Warder reports on a pre-market slump in stocks for computer chip makers following tighter controls on computer chip exports.
AMD said in a regulatory filing Tuesday that the export controls could potentially result in a charge of around $800 million in “inventory, purchase commitments and related reserves.”
The Commerce Department said Wednesday that its new export licensing requirements pertain to Nvidia’s H20, AMD’s MI308 chips “and their equivalents.” Commerce said it is “committed to acting on the President’s directive to safeguard our national and economic security.”
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