Foxconn plans a huge Taiwan AI data center with NVIDIA
Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, said on May 20 that the artificial intelligence centre, announced as Nvidia, is being constructed in stages and aims to have 100 megawatts of power.
Nvidia announced that it had spent $44.06 billion when it released its first quarter revenue on May 28th, as its data center business rose 73% year-on-year.
The company recorded an increase in revenue despite $4.5 billion in claims related to excess inventory and purchase obligations after export restrictions were set by the Trump administration on H20 chips designed for the Chinese market.
Nvidia CEO Jensen Huang said in a call from the company’s investors that “the H20 export ban has terminated its hopper data center business in China,” and that China’s $50 billion AI chip market is “effectively shut down to the US industry.”
According to Reuters, the company had expected to receive a $5.5 billion bill, but Nvidia said in a commentary from the CFO that reusing the material could mitigate the impact. The chip giant reported losing $2.5 billion in H20 revenue in the quarter.
Nvidia stock rose on Wednesday outside of business hours after trading, bouncing gains of 4% to 5% after the bell.
Nvidia’s revenue reached export fees
The company said its total margin was 61% of the quarter, but it was 71.3% without export restrictions.
The same dynamics were reported for revenues as NVIDIA recorded earnings per share of 81 cents, which was 96 cents if not incurred.
The company expects its current quarter revenue to be around $45 billion, with export restrictions predicting a loss of $8 billion in H20-related revenue.
Huang, founder and CEO of Nvidia, pointed out the strength of the company’s artificial intelligence business in a press release accompanying the release, despite political tensions.
“Country around the world recognizes AI as an essential infrastructure, like electricity and the internet,” writes Huang.
