Semiconductor giant Nvidia is facing unexpected new U.S. export controls on its H20 chips.
Nvidia has been informed by the U.S. government that a license will be required to export its H20 AI chips to China, citing the risk of the chip being used in a supercomputer in China.
Nvidia anticipates $5.5 billion in related charges in its Q1 2026 fiscal year.
The H20 chip was allegedly used to train models from AI startup DeepSeek, which led to calls for stronger export controls.