May 2nd, 2025
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The big computer chip company Nvidia cannot sell its H20 chips to some countries because the U.S. government made new rules.
Nvidia said on Tuesday that the U.S. government told them they need special permission to sell their H20 computer chips to China. This permission is needed forever because the government is worried the chips could be used in powerful computers in China.
Nvidia thinks it will have costs of about $5.5 billion in the first part of its business year, which ends on April 27. The price of the company's stock went down by about 6% after the market closed.
The H20 is the best AI chip Nvidia is allowed to sell to China because of the rules from the U.S. Last week, a report said that the boss, Jensen Huang, might have stopped new rules for the H20. This happened after he had dinner with President Trump. Maybe it was because Nvidia said they would build computer centers 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. Experts quickly said that the company didn't give many details about this plan.
Some government officials said the H20 chip should not be sold to other countries easily because a Chinese company used it to train their AI. This AI surprised the U.S. market in January.
Nvidia chose not to provide a statement.
May 2nd, 2025
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