Nvidia, which leads the artificial intelligence (AI) chip market, publicly expressed concerns about the U.S. government's new regulatory policies. Washington is reportedly considering a plan to impose a 15% fee on sales of AI chips to China, and Nvidia warned that this measure, if implemented, could lead to legal disputes and a loss of competitiveness.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on the 27th (local time), Nvidia stated, "If the U.S. government demands a percentage of our revenue, we could become embroiled in litigation, and our expenses may increase while our competitive position is damaged," adding that "competitors not subject to this measure would gain a windfall."
Colette Kress, Nvidia's Chief Financial Officer (CFO), said during a conference call following the second quarter earnings announcement, "It is still unclear how the U.S. government will design this regulation," noting that "discussions with the government are ongoing."
The Donald Trump administration, in April, completely banned the sale of H20 chips to China but reversed its stance earlier this month to issue a limited sales permit. Instead, it is reported to have required a 15% fee on revenue generated in China to be paid to the U.S. government.
CFO Kress stated, "Since the end of July, the U.S. government began reviewing sales licenses for H20 chips to China, and while some customers have received approval, no shipments have been made under this license so far." She further mentioned, "If shipments are resumed, an additional $2 billion to $5 billion (approximately 2.8 trillion to 7 trillion won) in revenue could be added." However, she added, "Due to geopolitical tensions, we cannot be certain if we can fulfill actual orders, so we have not included Chinese revenue in our guidance for the third quarter."