Big computer chip company Nvidia has new US rules about selling its H20 chips to other countries.

On Tuesday, Nvidia said the U.S. government told them they need special permission to send their H20 AI chips to China. They need this permission forever. The U.S. government said this is because the chips might be used in a very powerful computer in China.

Nvidia thinks it will spend around $5.5 billion in the first three months of its money year for 2026, which ends on April 27. The company's stock price went down by about 6% after the market closed.

The H20 is the best AI chip Nvidia can sell to China because of rules from the U.S. Last week, NPR said that the head of Nvidia, Jensen Huang, might have stopped new rules about the H20. This might have happened when he had dinner with President Trump. Nvidia said it would put money into AI computer centers in the U.S., and this might have helped.

Maybe it's not a surprise, but on Monday Nvidia said it would spend a lot of money in the next four years to make some AI chips in the U.S. People who know about this said the company didn't give many details.

Some government officials wanted to stop or limit sending the H20 chip to other countries. They said a company in China used the chip to make their AI models. One of these models surprised the US AI market in January.

Nvidia chose not to make a statement.