Tech shares dip as Nvidia says controls on AI chip exports will cost it billions

Chief executive Jensen Huang during the keynote address of Nvidia GTC in March (Nic Coury/AP)

Shares in computer chipmakers slumped on Wednesday after Nvidia said tighter US government controls on exports of computer chips used for artificial intelligence will cost it an extra 5.5 billion dollars (£4.15 billion).

The company, which announced on Monday that it will produce its artificial intelligence supercomputers in the United States for the first time, said the government told it that its H20 integrated circuits and others of a similar bandwidth would be subject to the licensing requirements for the “indefinite future”.