May 2nd, 2025
The big company Nvidia has new rules from the U.S. about selling its H20 computer chips to other countries.
On Tuesday, Nvidia said the U.S. government told them they need a special paper to send their H20 AI chips to China. They will always need this paper because the U.S. government is worried the H20 chips might be used in a very powerful computer in China.
Nvidia thinks it will have costs of about 5.5 billion dollars in the first part of its money year, which ends on April 27th, 2026. The company's stock price went down by about 6% after the market closed.
The H20 is the best AI chip Nvidia can send to China because of the rules from the U.S. Last week, some people said that Nvidia's boss might have stopped new rules for the H20. He might have done this by saying Nvidia would spend money on places for AI data in the U.S.
Maybe it's not a surprise, but Nvidia said on Monday they will spend a lot of money over the next four years to make some AI computer chips in the U.S. Experts said the company didn't give many details about their plan.
Some people in the government wanted to stop selling a computer chip called H20 to other countries. They thought China was using it to make a strong AI that surprised people in the US in January.
Nvidia chose not to provide a statement.
May 2nd, 2025
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