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Semiconductor giant Nvidia is facing unexpected new U.S. export controls on its H20 chips.<\/p>\n
In a filing Tuesday<\/a>, Nvidia said it was informed by the U.S. government that it will need a license to export its H20 AI chips to China. This license will be required indefinitely, according to the filing \u2014 the U.S. government cited \u201crisk that the [H20] may be used in [\u2026] a supercomputer in China.\u201d<\/p>\n Nvidia anticipates $5.5 billion in related charges in its Q1 2026 fiscal year, which ends April 27. The company\u2019s stock was down around 6% in extended trading.<\/p>\n The H20 is the most advanced AI chip Nvidia can export to China under the U.S.\u2019 current and previous export rules. Last week, NPR<\/a> reported that CEO Jensen Huang might have talked his way out<\/a> of new H20 restrictions during a dinner at President Donald Trump\u2019s Mar-a-Lago resort, in part by committing that Nvidia would invest in AI data centers in the U.S.<\/p>\n Perhaps not-so-coincidentally, Nvidia announced on Monday<\/a> that it would spend hundreds of millions of dollars over the next four years manufacturing some AI chips in the U.S. Pundits<\/a> were quick to point out that the company\u2019s commitment was light on the details.<\/p>\n Multiple government officials had been calling for stronger export controls on the H20 because the chip was allegedly used to train models from China-based AI startup DeepSeek, including the R1 \u201creasoning\u201d model that threw the U.S. AI market for a loop in January.<\/p>\n Nvidia declined to comment.<\/p>\n<\/div>\n