US Government Imposes Export License on Nvidia's H20 AI Chips

US Government Imposes Export License on Nvidia's H20 AI Chips
Nvidia faces new U.S. export controls requiring a license for its H20 AI chips to China, citing concerns over potential supercomputer use. The indefinite license requirement could lead to $5.5 billion in charges for Nvidia in Q1 2026. The H20 chips are critical to the company, and their restricted export follows allegations of usage by China's DeepSeek AI startup. Despite a recent commitment to invest in U.S. AI manufacturing, Nvidia's stock fell 6% in after-hours trading. The situation highlights rising tensions between U.S. and Chinese technology sectors.