US Imposes Export Controls on Nvidia's AI Technology Amid China Fears and $500 Billion Investment Plan

Published on 4.16.25

  The US government has imposed export controls on artificial intelligence (AI) technology, with a focus on limiting its sale to China. Nvidia's H20 AI chip is at the center of these restrictions, prompting the company to design chips that adhere to US limits. Nvidia plans to invest up to $500 billion in AI server construction in the US over four years as part of the Trump administration's efforts to promote domestic manufacturing and reduce reliance on foreign suppliers. This investment will also create jobs and stimulate economic growth. The restrictions have already had an impact on Nvidia, with its shares plummeting 5.8% in pre-market trading after the company announced it will face $5.5 billion in extra costs due to tighter US government controls. The move has also affected rival chip maker AMD, with its shares falling 6.5%.

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