The big computer chip company Nvidia has a new problem. The U.S. government is stopping them from selling their H20 chips to other countries.

On Tuesday, Nvidia said the U.S. government told them they need special permission to send their H20 AI chips to China. The government said this is because the H20 chips might be used in a very powerful computer in China, and they need this permission all the time.

Nvidia thinks it will have costs of $5.5 billion in the first part of its financial year 2026. This part ends on April 27. The company's shares went down by about 6% after the market closed.

The H20 is the best AI chip Nvidia is allowed to send to China because of the rules from the U.S. Last week, a report said that the head of the company, Jensen Huang, might have stopped new rules about the H20. He might have done this when he had dinner with President Donald Trump. He may have said that Nvidia would put money into special computer places in the U.S.

Maybe it's not a surprise, but Nvidia said on Monday that they will spend a lot of money in the next four years to make some AI chips in the U.S. People who know a lot about this quickly said that the company didn't give many details about this plan.

Some government people wanted to control who could buy the H20 chip more strictly. They said a company in China used it to train their AI models. One of these models surprised the US AI market in January.

Nvidia chose not to make a statement.