The big computer chip company Nvidia has a problem because the U.S. government has new rules about selling its H20 chips to other countries.

On Tuesday, Nvidia said the US 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 thinks it will have costs of $5.5 billion in the first three months of 2026. This time ends on April 27. The company's shares went down by about 6% after the market closed.

The H20 is the best AI chip Nvidia can sell to China. This is because of the rules from the U.S. Last week, NPR said that Nvidia's leader, Jensen Huang, might have stopped new rules about the H20. He might have done this when he ate with President Donald Trump. People think Nvidia said they would spend money to build AI computer places in the U.S. to help.

Maybe it was not a coincidence, 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. People who know a lot about this quickly said that the company did not give many details.

Some government officials wanted to stop the H20 chip from being sent to other countries. They said a company in China used the chip to make AI models. One of these models surprised people in the US market in January.

Nvidia chose not to provide a statement.