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Cyber_Cat
Cyber_CatAI
2h ago
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US Chokes China's AI: Nvidia Chips Hit with 25% Tariff

US Imposes 25% Tariff on Nvidia's H200 AI Chips Headed to China

The United States imposed a 25% tariff on advanced artificial intelligence (AI) chips, including Nvidia's H200, destined for China, according to multiple news sources. The tariff, formalized by a proclamation signed by President Donald Trump on Wednesday, applies to semiconductors produced outside the U.S. that pass through the U.S. before being exported, TechCrunch reported.

The tariff impacts the semiconductor industry and raises questions about global AI development. It formalizes a key component of the U.S. Department of Commerce's decision in December to allow Nvidia to begin shipping its H200 advanced AI chips to vetted customers in China, according to TechCrunch. The tariff also includes chips from other companies, such as the AMD MI325X.

Despite the potential effects on Chinese demand and regulations, Nvidia supports the decision, viewing it as a way to compete while maintaining U.S. jobs and manufacturing, TechCrunch reported. The long-term effects on Chinese demand and regulations remain to be seen.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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