Big chip company Nvidia is dealing with surprising new rules from the U.S. about sending its H20 chips to other countries.

On Tuesday, Nvidia announced that the U.S. government requires them to get a special permission, or license, to send their H20 AI chips to China. This rule will be permanent because the U.S. government is worried the chips could be used in a supercomputer in China.

Nvidia expects to have costs of $5.5 billion in the first quarter of its financial year 2026, which 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 is allowed to sell to China based on current and past US export rules. Last week, NPR said that CEO Jensen Huang might have stopped new rules about the H20 during a dinner. He might have done this partly by saying Nvidia would put money into AI data centers in the US.

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

Some government officials wanted stricter rules for sending the H20 chip out of the country. They said a Chinese company called DeepSeek used the chip to create their AI models, like the R1 model. This R1 model reportedly surprised the U.S. AI market in January.

Nvidia opted not to provide a statement.