US technology giant Nvidia said that it received a directive from the government to issue an export license to chips exported to China, the company said in an April 9 press release.
The directive is from the US Commerce Department, which also required AMD to issue the export license to AMD's MI308 artificial intelligence chips to China, Reuters reported Tuesday.
The directive also covers Nvidia's H20 chips that are being exported to the mainland, Hong Kong and Macau.
Nvidia said it would incur charges of up to $5.5 billion due to H20 products for inventory, purchase commitments, and related reserves, the company said.
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