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Nvidia to take $5.5bn hit as US clamps down on exports of AI chips to China

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Nvidia to take .5bn hit as US clamps down on exports of AI chips to China

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Donald Trump’s administration is clamping down on Nvidia’s ability to sell artificial intelligence chips to China, sending the Silicon Valley giant’s shares sliding in pre-market trading and hitting Wall Street tech stocks.

Nvidia revealed new US controls on American chipmakers’ sales to China in a late-night regulatory filing on Tuesday, in which it said it expected to take a $5.5bn earnings hit as a result.

The curbs were subsequently confirmed by the commerce department, marking another escalation in Donald Trump’s trade war with Beijing.

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The chipmaker said its H20 chip, which is already tailored to comply with Joe Biden-era export controls that prevent the sale of its most powerful chips in China, would now require a special licence to be sold to Chinese customers.

It is still unclear how many such licences will be granted, but Nvidia said it would take a $5.5bn charge in the quarter to April 27 related to H20 chips for “inventory, purchase commitments, and related reserves”.

Analysts estimate Nvidia will generate about $17bn in sales to Chinese customers in the current financial year.

Nvidia’s shares fell 7 per cent in pre-market trading on Wednesday, while futures tracking the tech-focused Nasdaq 100 index were down more than 2 per cent.

Shares in Dutch chipmaking equipment company ASML sank 6 per cent after orders of its machines fell short of expectations. Shares in US semiconductor group AMD also fell almost 6 per cent in pre-market trading.

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Stocks in Hong Kong also fell, led by leading AI chip buyers Alibaba, down almost 4 per cent, Baidu and Tencent, which both fell about 2 per cent.

The new US chip controls mark the latest salvo in a spiralling trade war between the world’s two largest economies. Earlier this month, the Trump administration imposed additional tariffs of 145 per cent on China, with a reprieve for some consumer electronics. Beijing matched the additional duties in retaliation.

The shortage of domestic chip suppliers in China able to build products to rival those of Nvidia had meant its tech companies were flocking to buy H20s, even in the face of Beijing’s steep import duties.

But that could change under the new US controls. Since the H20 chip is less powerful than those Nvidia can sell outside China, customers in the rest of the world may also be unwilling to buy up stock that cannot be sold there.

Bernstein analysts on Tuesday said the H20 accounted for about $12bn of Nvidia’s $17bn revenues in China over the past year. They added that there was still a lack of clarity on whether licences might be granted, or whether it amounted to a full “wipeout” of the product line.

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Nvidia said it was notified of the new controls on April 9 and was told on Monday that the licence requirement for H20 and any similar chips “will be in effect for the indefinite future”.

On Tuesday, White House press secretary Karoline Leavitt urged China to cut a new trade deal with the US, saying, “the ball is in China’s court”.

The US commerce department later confirmed it was issuing new export licensing requirements for the H20, as well as AMD’s MI308 and equivalent chips. It said it was “acting on the president’s directive to safeguard our national and economic security”.

The US move underscores Nvidia’s exposure to geopolitical tensions between Washington and Beijing. The chip designer has been at the heart of the AI boom, and briefly last year became the world’s most valuable company.

On Monday, the Trump administration launched a national security probe that could lead to new tariffs on semiconductors, as it holds off from immediately applying steeper levies on chips.

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Nvidia’s chips are manufactured in Taiwan, so they could be subject to import duties when sold to US-based customers.

The company said on Monday it would spend up to half a trillion dollars on US AI infrastructure over the next four years through partnerships with companies including Taiwan Semiconductor Manufacturing Company and Foxconn. The Financial Times had first reported on its investment plans.

Nvidia introduced its China-focused H20 processors last year after the Biden administration imposed export controls on its chips. They are less powerful than its top range of graphics processing units, or GPUs, coveted by Microsoft, OpenAI, Meta and Amazon.

Despite its reduced performance, the H20 has still seen solid demand in China. But Beijing has taken steps to encourage local tech companies to use homegrown chips from companies such as Huawei, and could freeze out Nvidia’s products with new energy efficiency rules.

Video: Nvidia’s rise in the age of AI | FT Film
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Former Olympian pleads not guilty in reflecting pool vandalism charges

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Former Olympian pleads not guilty in reflecting pool vandalism charges

Former U.S. Olympian David Hearn (left) walks with his attorney Norman Eisen to speak to reporters and protesters gathered after his arraignment at the Superior Court of the District of Columbia in Washington, D.C. on Thursday.

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Former U.S. Olympic canoeist David Hearn pleaded not guilty to damaging the Lincoln Memorial Reflecting Pool in D.C. Superior Court Thursday morning.

Federal prosecutors charged Hearn with a single count of destruction of property causing more than $1,000 in damage to the pool.

Hearn has previously claimed, which his attorneys repeated during a short press conference outside the court, that he simply touched the water in the pool out of curiosity.

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The Trump administration had just completed a $14 million renovation of the pool.

But shortly after the work finished, peeling paint and algae gathered in the water. The remodel has been largely criticized as a massive failure and waste of taxpayer dollars.

Superior Court Judge Carmen McLean released Hearn on his own recognizance. His next hearing is scheduled for Aug. 5.

Norm Eisen, one of Hearn’s attorneys, spoke to reporters outside of court following the hearing. He said the administration is using Hearn as a “scapegoat … for their own failures.”

“It is not a crime to touch the reflecting pool, to touch water in the United States of America,” he said.

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Prosecutors say there is a host of evidence against Hearn.

This is a developing story.

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Three more people charged with damaging Reflecting Pool after Trump’s multimillion-dollar restoration | CNN Politics

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Three more people charged with damaging Reflecting Pool after Trump’s multimillion-dollar restoration | CNN Politics

Three more people have been criminally charged with destruction of property at the Lincoln Memorial Reflecting Pool.

Officers say they detained Cameron Thiers, Sophie Dennison-Gibby and Justin Carreno one Saturday afternoon in June and described in court documents witnessing them peeling and removing pieces of blue paint from the Reflecting Pool.

One officer “witnessed Carreno reach down into the reflecting pool and pull up a piece of the blue paint,” according to the court documents.

The officer who detained Dennison-Gibby “found 1 additional piece of the reflecting pool liner” in her purse, the documents said.

All three incidents were recorded on the officers’ body worn cameras, they said in the court documents.

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Several “partnering law enforcement agencies assigned to the Reflecting Pool” working with US Park Police were involved in detaining the two men and one woman — including officers from Texas, Oklahoma, Montana and California.

One of the officers said in court documents that Thiers “admitted to removing a piece of blue sealant from the Reflecting Pool and still had it in his hand when I made contact with him.”

The three defendants were arraigned in court Wednesday and pleaded not guilty to the misdemeanor charges of destruction of property with a value less than $1,000. The judge ordered them to stay away from the Reflecting Pool.

Lawyers for Thiers and Dennison-Gibby declined to comment. CNN has reached out to Carreno’s attorney.

If found guilty of destruction of property, the defendants could be fined up to $1,000 and face a maximum of 180 days behind bars.

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The New York Times first reported that three additional people had been charged with damaging the Reflecting Pool.

President Donald Trump has repeatedly claimed that vandals caused major damage to the pool by gashing the lining after his administration spent more than $14 million on renovations, though he has not provided evidence to support that claim. The officers who charged Carreno, Thiers and Dennison-Gibby did not accuse them of gashing the lining.

Former Olympic canoeist David Hearn was indicted by a grand jury in Washington, DC, last week for allegedly damaging the Reflecting Pool. Hearn — unlike Carreno, Thiers and Dennison-Gibby – was charged with destruction of property with a value of more than $1,000 which carries a maximum penalty of 10 years in prison, if convicted. He is set to be arraigned in court Thursday.

Crews began draining the Reflecting Pool over the weekend to make repairs, according to Interior Secretary Doug Burgum, for the second time in three months.

The move comes after weeks of problems – algae blooms, green-hued water, a chipping bottom and the administration’s allegations of vandalism – that have plagued the iconic landmark, making its woes the subject of national interest.

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Supreme Court financial disclosures reveal how their books add to their income

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Supreme Court financial disclosures reveal how their books add to their income

Supreme Court Justice Amy Coney Barrett speaks at the Reagan Library on Sept. 9, 2025, in Simi Valley, Calif. Barrett discussed and signed copies of her new book, Listening to the Law: Reflections on the Court and Constitution.

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Even as the Supreme Court was handing down one legal thunderbolt after another last week, the justices were quietly releasing their annual financial reports. Justice Samuel Alito was the only sitting justice to request an extension, which he has done for 15 years. The disclosures do not give a complete account of the justices’ total income and wealth, but they give insights into their concertgoing, guest professorships and even their involvement in youth sports.

In addition to their salaries, much of the justices’ reported income came from their book deals. Justice Ketanji Brown Jackson led the pack earning more than $1.1 million last year for a total of roughly $4 million since her memoir, Lovely One, was published in 2024.

Justices Sonia Sotomayor, Neil Gorsuch, Amy Coney Barrett and retired Justice Anthony Kennedy also reported income from published books. Earnings from their books ranged from $849,000 for Barrett, to $300,000 for Gorsuch and $88,000 for Sotomayor, whose books include her 2013 autobiography and five children’s books. Justice Clarence Thomas, who previously earned $1.5 million for his 2007 memoir, listed no publisher payments last year, and Justice Brett Kavanaugh, one of 13 co-authors of a 2016 legal treatise, also received no payments last year. Kavanaugh is said to be working on a memoir but he listed no payments for the anticipated book. Alito does have a book coming out in the fall, but with his financial report still outstanding, there is no data on how much he was paid for the work in 2025.

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The only two sitting justices who have not written books are Chief Justice John Roberts and Justice Elena Kagan.

Many justices also earned income from teaching at law schools. Roberts reported income from New England Law, located in Boston, and Gorsuch reported teaching income from George Mason University in Virginia. Thomas taught classes at Catholic University in Washington, D.C., and Barrett and Kavanaugh taught at Notre Dame Law School. Barrett graduated from the school and began teaching there 23 years ago; Kavanaugh has family connections to Notre Dame.

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