Big chip company Nvidia is facing new US rules that limit the export of its H20 chips.

Nvidia said on Tuesday that the U.S. government told them they need special permission to send their H20 AI chips to China. The government is worried the chips could be used in a supercomputer there.

Nvidia expects costs of $5.5 billion in the first quarter of its 2026 financial year, which finishes on April 27. The company's share price fell by about 6% after the market closed.

The H20 is the best AI chip Nvidia can send to China under the U.S.'s current and past export rules. Last week, NPR reported that CEO Jensen Huang might have prevented new rules for the H20 during a dinner at President Donald Trump's resort. He may have done this partly by promising that Nvidia would put money into AI data centers in the U.S.

Maybe not by chance, Nvidia announced on Monday that it will spend a lot of money, hundreds of millions of dollars, 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's plan didn't have many details.

Several government officials wanted stricter rules for exporting the H20 chip. They believed a Chinese AI company called DeepSeek used it to train their AI models, including one called R1. This model surprised the US AI market in January.

Nvidia opted not to provide a statement.