The big computer company Nvidia is having problems because the US government has put new rules on selling their H20 computer 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. They will always need this permission because the government is worried the chips could be used in a very powerful computer in China.

Nvidia expects costs of $5.5 billion in the first part of its year 2026. This time finishes on April 27. The company's stock price went down about 6% after the market closed.

The H20 is the best AI chip Nvidia is allowed to sell to China because of rules from the U.S. Last week, a news report said that Nvidia's boss, Jensen Huang, might have stopped new rules about the H20. This might have happened during a meal with President Trump. One reason could be that Nvidia said they would put money into AI centers in the U.S.

Maybe not by chance, Nvidia said on Monday that it 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 said the company did not give many details.

Some government officials wanted to stop sending the H20 chip to certain places. They thought a company in China used it to build their AI, like the R1 model. This model surprised the US AI market in January.

Nvidia did not want to say anything.