Nvidia warns of $5.5bn writedown as US tightens export curbs
The Trump administration's new export restrictions on Nvidia's H20 chip to China could cost the company billions of dollars and severely impact a product line created specifically to comply with earlier US restrictions.
On 9 April 2025, the US government informed Nvidia that it would require a license to export H20 chips to China. On 14 April, the government further informed the company that the license requirement will be in effect 'for indefinite future.'
The government also told the company that the new license requirement addresses the risk that 'the covered products may be used in, or diverted to, a supercomputer in China,' Nvidia said in a filing.
Nvidia warned it will report about $5.5bn in writedowns during the first quarter 2026 that ends on 27 April 2025, linked to inventory and commitments for the H20 chip.
The company developed the H20 chip in response to 2023 restrictions that targeted another China-specific processor, the H800, which was introduced after earlier export controls. While the H20 is intentionally less powerful and doesn't match Nvidia's flagship chips in training AI models, it remains capable of supporting AI software and services. It is suitable for the inference phase—where AI systems analyse data, recognise patterns, and make decisions, reported Bloomberg.
The decision to curb H20 exports comes amid ongoing tensions between Washington and Beijing over technology.
The US government has taken a progressively aggressive stance on restricting China's access to semiconductors and chipmaking tools, citing national security concerns.
Since October 2022, US officials have widened the scope of bans to include high-bandwidth memory chips and other components critical for AI applications.
Earlier in April 2025, Nvidia announced plans to manufacture up to $500bn of AI supercomputers within the US over the next four years.
The initiative is said to mark the first time the company's AI infrastructure will be fully produced in the US, as it collaborates with global manufacturing partners to establish and operate advanced production facilities.
"Nvidia warns of $5.5bn writedown as US tightens export curbs" was originally created and published by Verdict, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Europe Builds AI Infrastructure With NVIDIA to Fuel Region's Next Industrial Transformation
Europe AI Infrastructure France, Italy and the United Kingdom Support Regional Technology and Cloud Providers Domyn, Mistral AI, Nebius and Nscale to Deploy More Than 3,000 Exaflops of NVIDIA Blackwell Systems for Sovereign AI NVIDIA to Build AI Factory in Germany to Accelerate Industrial Manufacturing Applications in Europe European Telcos Fastweb, Orange, Swisscom, Telefónica and Telenor Build AI Infrastructure With NVIDIA, Enabling Enterprises to Adopt and Build Agentic AI Applications European Enterprises, Startups and Public Sector to Harness Regional NVIDIA Infrastructure to Develop and Deploy Agentic and Physical AI NVIDIA Establishes AI Technology Centers Across Continent to Advance Research, Upskill Workforces and Accelerate Scientific Breakthroughs PARIS, June 11, 2025 (GLOBE NEWSWIRE) -- —NVIDIA GTC Paris at VivaTech—NVIDIA today announced it is working with European nations, and technology and industry leaders, to build NVIDIA Blackwell AI infrastructure that will strengthen digital sovereignty, support economic growth and position the continent as a leader in the AI industrial revolution. France, Italy, Spain and the U.K. are among the nations building domestic AI infrastructure with an ecosystem of technology and cloud providers, including Domyn, Mistral AI, Nebius and Nscale, and telecommunications providers, including Orange, Swisscom, Telefónica and Telenor. These deployments will deliver more than 3,000 exaflops of NVIDIA Blackwell compute resources for sovereign AI, enabling European enterprises, startups and public sector organizations to securely develop, train and deploy agentic and physical AI applications. NVIDIA is establishing and expanding AI technology centers in Germany, Sweden, Italy, Spain, the U.K. and Finland. These centers build on NVIDIA's history of collaborating with academic institutions and industry through the NVIDIA AI Technology Center program and NVIDIA Deep Learning Institute to develop the AI workforce and scientific discovery throughout the regions. 'Every industrial revolution begins with infrastructure. AI is the essential infrastructure of our time, just as electricity and the internet once were,' said Jensen Huang, founder and CEO of NVIDIA. 'With bold leadership from Europe's governments and industries, AI will drive transformative innovation and prosperity for generations to come.' 'France is committed to investing in AI to strengthen our economy, benefit our citizens and uphold our values,' said Emmanuel Macron, president of the French Republic. 'By working closely with our nation's leading technology innovators and NVIDIA, we are equipping researchers, entrepreneurs and public institutions with the tools they need to explore new ideas, tackle complex challenges and help shape the future of AI for France.' 'Just as coal and electricity once defined our past, AI is defining our future,' said U.K. Tech Secretary Peter Kyle. 'NVIDIA's expansion of its technology center here in the U.K. will be vital in helping us to deliver on our AI ambitions, and their partnership in building the capabilities that will transform our AI Growth Zones into engines of opportunity. This is our Plan for Change in action, bringing together leading innovators to build the compute infrastructure that will drive growth across every region and secure the U.K.'s place as a global AI leader in the age of AI.' 'This agreement represents a strategic step toward strengthening Italy's technological sovereignty and ensuring that our businesses have secure and competitive access to data management,' said Minister of Enterprise and Made in Italy Adolfo Urso. 'The collaboration with top-tier partners such as NVIDIA and Domyn confirms the government's commitment in supporting high-level alliances to foster innovation and the competitiveness of the national production system.' Building Europe's Foundation for AI Infrastructure and InnovationBuilding AI infrastructure requires strategic investment in advanced systems, land and facilities, sustainable energy access, skilled experts and partnerships. To accelerate the development of these national resources, NVIDIA is working with leaders across France, the U.K., Germany and Italy. In France, Mistral AI is working with NVIDIA to build an end-to-end cloud platform powered by 18,000 NVIDIA Grace Blackwell systems in the first phase, with plans to expand across multiple sites in 2026. This infrastructure will enable organizations across Europe to quickly develop and deploy AI using optimized Mistral AI models and validated AI factory designs, accelerating the adoption of agentic AI applications. In the U.K., NVIDIA is collaborating with NVIDIA Cloud Partners Nebius and Nscale to unlock advanced AI capabilities for enterprises and businesses of all sizes. At London Tech Week, the cloud providers announced the first phase of their AI infrastructure development plans to deploy 14,000 NVIDIA Blackwell GPUs to power new data centers, making scalable, secure AI infrastructure widely accessible across the U.K. In Germany, NVIDIA and its partners are building the world's first industrial AI cloud for European manufacturers. This AI factory will be powered by NVIDIA DGX™ B200 systems and NVIDIA RTX PRO™ Servers featuring 10,000 NVIDIA Blackwell GPUs to enable Europe's industrial leaders to accelerate every manufacturing application, from design, engineering and simulation to factory digital twins and robotics. In Italy, NVIDIA is working with Domyn and the government to advance the nation's sovereign AI capabilities. Domyn is developing its Domyn Large Colosseum reasoning model on its supercomputer, Colosseum, with NVIDIA Grace Blackwell Superchips, in alignment with its mission to support regulated industries in adopting AI. European Telcos Build AI Infrastructure With NVIDIA for Regional EnterprisesNVIDIA is also working with leading European telecommunications providers — including Orange, Fastweb, Swisscom, Telefónica and Telenor — to develop secure, scalable sovereign AI infrastructure across the region. Orange is accelerating the development of enterprise-grade AI, including agentic AI, large language models and personal AI assistants, using Orange Business' Cloud Avenue, built on high-performance NVIDIA infrastructure. Fastweb introduced MIIA — an Italian language model to support generative AI applications — trained and running on its NVIDIA DGX AI supercomputer. Telenor is expanding its sovereign AI infrastructure in Norway with a new, renewable-powered data center, in addition to hosting a partner's multilingual AI translation service, available in over 100 languages. Swisscom is launching new AI services, including GenAI Studio and AI Workhub hosted on its sovereign AI NVIDIA DGX SuperPOD™-based infrastructure, empowering Swiss enterprises to rapidly build and scale AI applications. Telefónica is piloting a distributed edge AI fabric across Spain with hundreds of NVIDIA GPUs to deliver low-latency, privacy-focused AI services. These collaborations enable enterprises to develop and deploy customized AI models and agentic applications at scale, tapping into telcos' extensive networks and trusted role as critical infrastructure providers. NVIDIA AI Technology Centers Fuel Research, Upskilling and Scientific ProgressNVIDIA is establishing and expanding technology centers in Germany, Sweden, Italy, Spain, the U.K. and Finland to accelerate AI skills development, research and infrastructure for the continent's enterprises and startups. The Bavarian AI center in Germany, intended to be established in collaboration with the Bayern KI consortium, will advance research in fields including digital medicine, stable diffusion AI and open-source robotics platforms to foster global collaboration. The Sweden AI center will advance world-class AI research with support from NVIDIA experts and hands-on NVIDIA Deep Learning Institute training to help with upskilling. The Italy AI center will expand to include new AI factory deployments with the CINECA consortium. The Spain AI center will expand to include a new AI factory with the Barcelona Supercomputing Center. The U.K. AI center will accelerate the U.K.'s most groundbreaking research in embodied AI, materials science and Earth systems modeling. The Finland AI center enables researchers to accelerate AI research and applications for computer vision, machine learning and AI for science. These strategic initiatives across Europe build on NVIDIA investments in building AI infrastructure worldwide, including in Taiwan and the Middle East. Watch the NVIDIA GTC Paris keynote from Huang at VivaTech, and explore GTC Paris sessions. About NVIDIANVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing. For further information, contact: Corporate CommunicationsNVIDIA Corporationpress@ Certain statements in this press release including, but not limited to, statements as to: with bold leadership from Europe's governments and industries, AI driving transformative innovation and prosperity for generations to come; technology development in European nations; the benefits, impact, performance, and availability of NVIDIA's products, services, and technologies; expectations with respect to NVIDIA's third party arrangements, including with its collaborators and partners; expectations with respect to technology developments; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the 'safe harbor' created by those sections based on management's beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA's reliance on third parties to manufacture, assemble, package and test NVIDIA's products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA's existing product and technologies; market acceptance of NVIDIA's products or NVIDIA's partners' products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA's products or technologies when integrated into systems; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company's website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. © 2025 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, DGX, NVIDIA DGX SuperPOD and NVIDIA RTX PRO are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice. A photo accompanying this announcement is available at
Yahoo
20 minutes ago
- Yahoo
Musk regrets some of his Trump criticisms, says they 'went too far'
Elon Musk, the world's richest person and Donald Trump's former advisor, said Wednesday he regretted some of his recent criticisms of the US president, after the pair's public falling-out last week. "I regret some of my posts about President @realDonaldTrump last week. They went too far," Musk wrote on his social media platform X. Musk's expression of regret came just days after Trump threatened the tech billionaire with "serious consequences" if he sought to punish Republicans who vote for a controversial spending bill. Their blistering break-up -- largely carried out on social media before a riveted public since Thursday last week -- was ignited by Musk's harsh criticism of Trump's so-called "big, beautiful" spending bill, which is currently before Congress. Some lawmakers who were against the bill had called on Musk -- one of the Republican Party's biggest financial backers in last year's presidential election -- to fund primary challenges against Republicans who voted for the legislation. "He'll have to pay very serious consequences if he does that," Trump, who also branded Musk "disrespectful," told NBC News on Saturday, without specifying what those consequences would be. Trump also said he had "no" desire to repair his relationship with the South African-born Tesla and SpaceX chief, and that he has "no intention of speaking to him." In his post on Wednesday, Musk did not specify which of his criticisms of Trump had gone "too far." - 'Wish him well' - The former allies had seemed to have cut ties amicably about two weeks ago, with Trump giving Musk a glowing send-off as he left his cost-cutting role at the so-called Department of Government Efficiency (DOGE). But their relationship cracked within days as Musk described the spending bill as an "abomination" that, if passed by Congress, could define Trump's second term in office. Trump hit back at Musk's comments in an Oval Office diatribe and from there the row detonated, leaving Washington stunned. "Look, Elon and I had a great relationship. I don't know if we will anymore. I was surprised," Trump told reporters. Musk, who was Trump's biggest donor to his 2024 campaign, also raised the issue of the Republican's election win. "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate," he posted, adding: "Such ingratitude." Trump later said on his Truth Social platform that cutting billions of dollars in subsidies and contracts to Musk's companies would be the "easiest way" to save the US government money. US media have put the value of the contracts at $18 billion. With real political and economic risks to their falling out, both appeared to inch back from the brink on Friday, with Trump telling reporters "I just wish him well," and Musk responding on X: "Likewise." Trump had spoken to NBC on Saturday after Musk deleted one of the explosive allegations he had made during their fallout, linking the president with disgraced financier Jeffrey Epstein. Musk had alleged that the Republican president is featured in unreleased government files on former associates of Epstein, who died by suicide in 2019 while he faced sex trafficking charges. Trump was named in a trove of deposition and statements linked to Epstein that were unsealed by a New York judge in early 2024. The president has not been accused of any wrongdoing in the case. "Time to drop the really big bomb: (Trump) is in the Epstein files," Musk posted on X. "That is the real reason they have not been made public." Musk did not reveal which files he was talking about and offered no evidence for his claim. He appeared to have deleted those tweets by Saturday morning. bur-sco/dhc
Yahoo
20 minutes ago
- Yahoo
Trump and Musk's feud timeline: From Epstein allegations to Elon's olive branch
On Friday May 30, President Donald Trump handed his close aide and 'first buddy' Elon Musk a golden key to the White House, praising the work the tech billionaire had done for his administration. 'Elon gave an incredible service,' Trump said in a joint press conference with Musk last week. 'There's nobody like him.' That press conference was intended to mark the end of Musk's 130 days as a special government advisor, leading the Department of Government Efficiency (DOGE) in slashing excess federal spending. For the latest updates on the feud read our blog here Although there had been some disagreements during Musk's time in the role – the Tesla owner made it clear he was not a fan of Trump's tariffs, for instance – the event seemed to mark a conciliatory end to their working relationship. But there were rumblings: Musk, whose whole purpose at DOGE had been reducing federal expense, was deeply opposed to Trump's 'Big Beautiful Bill,' fearing it would ramp up the national debt over the next 10 years. While White House Press Secretary Karoline Leavitt had successfully managed to spin their difference of opinion as an example of healthy debate for a couple of days, everything came to a head on Thursday June 5. Here's a timeline of how the very public fight between Trump and Musk unfolded, which appeared unresolvable until Musk offered a grovelling apology six days later. Writing on X, Musk says: 'I'm sorry, but I just can't stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.' He continued: 'It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America (sic) citizens with crushingly unsustainable debt.' Two days later, things escalated dramatically. In an Oval Office appearance with German Chancellor Friedrich Merz, Trump said he was 'very disappointed' by Musk's comments. 'Elon knew the inner workings of this bill better than almost anybody sitting here,' Trump told reporters. 'Elon and I had a great relationship. I don't know if we will anymore.' Trump added he 'would have won Pennsylvania easily anyway,' without Musk's help. Musk posts a slew of tweets to X, in one of which he rebuts Trump's point about Pennsylvania, arguing: 'Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.' In another, he asks, 'Where is this guy today??' in response to a tweet of screenshots from the president's previous criticisms of increasing the debt ceiling. He then tweeted: 'The Big Ugly Bill will INCREASE the deficit to $2.5 trillion!' This is shortly followed by a new suggestion from Musk: 'Is it time to create a new political party in America that actually represents the 80% in the middle?' This post was still pinned to the top of the X owner's timeline for several days thereafter. Responding to MAGA blogger Laura Loomer on X, who was commenting about the divide amongst Republicans over the fight between Musk and Trump, the billionaire said: 'Oh and some food for thought as they ponder this question: Trump has 3.5 years left as President, but I will be around for 40+ years...' The president says that Musk was 'wearing thin' in a series of posts on his social media platform. 'I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!' Trump said. He then added: 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it!' Retweeting a screenshot of Trump's EV mandate comment (alluding to the Big, Beautiful Bill scrapping a $7,500 tax credit for EV customers, which would impact Tesla), Musk said: 'Such an obvious lie. So sad.' Musk tweeted: 'Files linked to the investigation of convicted sex offender Jeffrey Epstein have emerged as a point of fixation for Trump and his allies and right-wing media figures. 'Time to drop the really big bomb: Donald Trump is in the Epstein files. That is the real reason they have not been made public.' Shortly after, he wrote: 'Mark this post for the future. The truth will come out.' 'In light of the President's statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately,' he tweeted. Another X user replied, urging Musk to 'cool off and take a step back for a couple of days.' Musk replied: 'Good advice. Ok, we won't decommission Dragon.' Trump wrote on Truth Social: 'I don't mind Elon turning against me, but he should have done so months ago. This is one of the Greatest Bills ever presented to Congress. It's a Record Cut in Expenses, $1.6 Trillion Dollars, and the Biggest Tax Cut ever given. 'If this Bill doesn't pass, there will be a 68% Tax Increase, and things far worse than that. I didn't create this mess, I'm just here to FIX IT. This puts our Country on a Path of Greatness. MAKE AMERICA GREAT AGAIN!' Musk retweets an X user, who said: 'President vs Elon. Who wins? My money's on Elon. Trump should be impeached and JD Vance should replace him.' Musk tweets: 'The Trump tariffs will cause a recession in the second half of this year.' The point echoes a warning issued by many of the president's critics, from economists to pundits, but most notably his former presidential rival Kamala Harris. Musk tweets: 'Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL.' Musk's last repost for the day came from an X user, who said: 'This is why Republicans will likely lose the House in 2026 and then Democrats will spend two years investigating and impeaching President Trump. 'Trump and the Republicans in Congress need to deliver. We want budget cuts. We want agencies shut down. We don't want big govt.' The following day, West Wing aides briefed the media that the two men were planning a private phone call to clear the air, only for the president himself to tell reporters that he had no interest in speaking to the man who had donated at least $288m to his election campaign just months earlier, leaving their once-close relationship in limbo. Trump told Jonathan Karl of ABC News he was 'not particularly' interested in talking to Musk and said to Dana Bash of CNN: 'I'm not even thinking about Elon. He's got a problem. The poor guy's got a problem.' With Trump and his administration subsequently shifting focus to the Los Angeles anti-ICE protests, the tech boss unexpectedly extends an olive branch. 'I regret some of my posts about President Donald Trump last week,' Musk wrote on X in the small hours of the morning. 'They went too far.'
