May 2nd, 2025
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Big chip company Nvidia has a problem. The U.S. says it cannot sell some chips to other countries.
Nvidia said the U.S. government said they need special paper to send their H20 chips to China.
Nvidia thinks it will pay $5.5 billion. This is for the first part of its year 2026. This part finishes on April 27. The company's shares went down about 6% after the market closed.
The H20 is a good computer chip from Nvidia. Nvidia can sell it to China. This is allowed by the rules.
Maybe it is not a surprise, but Nvidia said it will make some AI chips in the U.S. The company will spend a lot of money on this. Some people said that Nvidia did not give many details.
Some people in the government wanted to stop other countries from buying a special computer part called H20. They thought China used it to make smart computers.
Nvidia said nothing about it.
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