Semiconductor big Nvidia is dealing with sudden new U.S. export controls on its H20 chips.

In a filing Tuesday, Nvidia mentioned it was knowledgeable by the U.S. authorities that it’s going to want a license to export its H20 AI chips to China. This license will likely be required indefinitely, in response to the submitting — the U.S. authorities cited “danger that the [H20] could also be utilized in […] a supercomputer in China.”

Nvidia anticipates $5.5 billion in associated costs in its Q1 2026 fiscal yr, which ends April 27. The corporate’s inventory was down round 6% in prolonged buying and selling.

The H20 is essentially the most superior AI chip Nvidia can export to China underneath the U.S.’ present and former export guidelines. Final week, NPR reported that CEO Jensen Huang may need talked his way out of recent H20 restrictions throughout a dinner at President Donald Trump’s Mar-a-Lago resort, partially by committing that Nvidia would put money into AI information facilities within the U.S.

Maybe not-so-coincidentally, Nvidia announced on Monday that it could spend lots of of thousands and thousands of {dollars} over the subsequent 4 years manufacturing some AI chips within the U.S. Pundits had been fast to level out that the corporate’s dedication was gentle on the main points.

A number of authorities officers had been calling for stronger export controls on the H20 as a result of the chip was allegedly used to coach fashions from China-based AI startup DeepSeek, together with the R1 “reasoning” mannequin that threw the U.S. AI marketplace for a loop in January.

Nvidia declined to remark.