Nvidia H20 Chip Exports Restricted: US Government License Required

Nvidia Faces New Export Restrictions on H20 AI Chips

Nvidia, a leading manufacturer of semiconductors, is now subject to newly implemented U.S. export controls concerning its H20 chips.

The company revealed in a statement on Tuesday that it has been notified by the U.S. government of the necessity to obtain a license for exporting its H20 AI chips to China.

Licensing Requirements and Financial Impact

This licensing requirement is expected to be ongoing. The U.S. government’s rationale centers around the potential for the H20 chip to be utilized in the development of a supercomputer within China.

Nvidia forecasts approximately $5.5 billion in associated charges during its fiscal year 2026, which concludes on April 27th. Following this announcement, the company’s stock experienced a decline of roughly 6% during after-hours trading.

H20 Chip and Previous Regulations

Currently, the H20 represents Nvidia’s most sophisticated AI chip that is permissible for export to China, adhering to both existing and prior U.S. export regulations.

Recent reports indicated that CEO Jensen Huang may have secured a reprieve from further H20 restrictions during a meeting with President Donald Trump at Mar-a-Lago. This was reportedly achieved through a pledge to invest in U.S.-based AI data centers.

Recent Investment Announcement

Notably, Nvidia announced on Monday a planned investment of several hundred million dollars over the next four years to manufacture certain AI chips domestically within the United States. Analysts have observed that the specifics of this commitment remain somewhat unclear.

Concerns Regarding DeepSeek and AI Model Training

Several governmental figures have advocated for stricter export controls on the H20 chip. Concerns arose from allegations that the chip was employed in training AI models developed by the China-based startup DeepSeek.

Specifically, the R1 “reasoning” model from DeepSeek caused considerable disruption within the U.S. AI market earlier this year.

Nvidia's Response

Nvidia has not issued any public comments regarding the situation.

Here's a summary of the key points:

• New U.S. export controls apply to Nvidia’s H20 chips destined for China.
• A license is now required for these exports, indefinitely.
• Nvidia anticipates a $5.5 billion charge in its fiscal year 2026.
• Concerns center on the chip’s potential use in Chinese supercomputers and AI model training.