Nvidia thinks it will have costs of $5.5 billion in the first financial quarter of 2026, which ends on April 27. The company's share price went down by about 6% after the stock market closed.

The H20 is the best AI chip Nvidia is allowed to send to China under the current and past rules from the U.S. Last week, NPR reported that CEO Jensen Huang might have prevented new rules for the H20 during a dinner at President Donald Trump's Mar-a-Lago resort. He might have done this partly by promising that Nvidia would invest in AI data centers in the U.S.

Maybe it's not a complete coincidence, but on Monday, Nvidia announced they will spend hundreds of millions of dollars in the next four years to make some AI chips in the US. Experts quickly said that the company didn't give many details about this plan.

Some government officials wanted stricter rules for sending the H20 chip to other countries. They thought a Chinese AI company called DeepSeek used it to train their AI models, like the R1 model. The R1 model surprised the US AI market in January.

Nvidia chose not to issue a statement.