Nvidia expects to take $5.5bn hit as US tightens AI chip export rules to China

Nvidia has said it expects a $5.5bn (£4.1bn) hit after Donald Trump’s administration barred the chip designer from selling crucial artificial intelligence chips in China, sending shares in one of the US’s most valuable companies plunging in after-hours trading. The company said in an official filing late on Tuesday that its H20 AI chip, which was designed specifically for the Chinese market to comply with export controls, would now require a special licence to sell there for the “indefinite future”. The US government, which is battling China in the race for AI supremacy, told Nvidia the new rules were designed…