Nvidia says it follows export laws 'to the letter' a day after AI chip sales to China stopped

Core Viewpoint - Nvidia is facing scrutiny from the U.S. government regarding its sales of AI chips, particularly the H20 chip, which has incurred $5.5 billion in costs due to canceled orders related to export restrictions to China [1][3][4]. Group 1: Company Response and Compliance - Nvidia stated that it strictly adheres to U.S. government regulations regarding sales and exports of its products [2]. - The company emphasized its compliance with export controls, particularly after the introduction of the H20 chip, which was designed to meet these regulations [3]. Group 2: Market Impact and Financials - Following the announcement of the investigation and the associated costs, Nvidia's stock price fell nearly 7% [4]. - Nvidia highlighted its contributions to the U.S. economy, including taxes paid and its domestic workforce, while also addressing concerns related to trade deficits [5]. Group 3: National Security Concerns - The investigation into Nvidia's sales was initiated by a House Select Committee focused on national security threats from China, indicating heightened scrutiny of the company's operations [3][4]. - Nvidia's technology is critical in the AI market, with significant usage by companies like China's DeepSeek, which has implications for market dynamics [4].