Source: Yuyuan Tantian/Weibo
As you may know, the tariffs imposed by US President Donald Trump are expected to have wide-ranging consequences. But besides tariffs, companies face challenges in exporting goods too, especially to China. For Nvidia, a license is required to sell AI chips to China.
According to CNBC, Nvidia said it will be charged USD 5.5 billion (~RM24.2 billion) quarterly to export its H20 GPUs to China and other countries. Following the announcement, the Nvidia stock slumped 6.87%. Despite that, Nvidia CEO Jensen Huang visited China on 17 April 2025, which suggests that Nvidia is not ready to give up on selling chips to China.
For reference, Nvidia's H20 chip was launched in 2022 for generative AI. This chip is compliant with US export restrictions put in place in 2022 by the Biden administration. By the way, the successful DeepSeek gen AI model uses this H20 chip. DeepSeek offers comparable performance with other generative AI platforms at comparatively lower prices. If you're curious, check our article about DeepSeek.
As for how this could affect consumers, DeepSeek users may see increased prices if the company is forced to offset the cost of the chips. What do you think? Let us know in the comments below!
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