The big computer chip company Nvidia has new rules from the U.S. government that make it hard to sell their H20 chips to other countries.

On Tuesday, the company 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 U.S. government is worried these chips could be used in a very powerful computer in China.

Nvidia expects to spend $5.5 billion in the first part of its financial year 2026. This part finishes on April 27. The company's stock price fell by about 6% after the market closed.

The H20 is the best AI chip Nvidia can sell to China because of the rules from the U.S. Last week, NPR said that the head of the company, Jensen Huang, might have stopped new rules about the H20. He might have done this when he ate dinner with President Donald Trump. He might have said that Nvidia would build AI computer places in the U.S.

Maybe it was not a coincidence, but on Monday Nvidia said it would spend a lot of money to make some AI chips in the U.S. in the next four years. Some experts quickly said the company did not give many details.

Some government people wanted to control sending the H20 chip out of the country more. They said a company in China used it to make AI programs, like one called R1. This R1 program surprised people in the U.S. who work with AI in January.

Nvidia chose not to provide a comment.