Nvidia and AMD to hand over 15% of China chip revenues to US
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Nvidia and AMD struck a rare agreement with the U.S. government, agreeing to give 15% of their sales revenue from certain chips sold in China directly to Washington. The deal covers Nvidia’s H20 artificial intelligence chip and AMD’s MI308 model. Both products are tailored for the Chinese market to comply with earlier export restrictions. U.S. officials said the revenue-sharing agreement was a condition for obtaining export licences to sell the chips in China. These licences were granted last week after months of delay. Nvidia did not deny the deal’s existence, stating it “follows rules the U.S. government sets for our participation in worldwide markets.” AMD declined to comment. Financial analysts estimate the arrangement could funnel billions into U.S. coffers. Bernstein Research projects Nvidia could sell around 1.5 million H20 units in China in 2025, generating about $23 billion in revenue. Under the 15% deal, more than $3 billion from those sales would go directly to the U.S. government. Officials have not yet said how they plan to use the funds. Export-control specialists say the move is unprecedented. No U.S. company has previously agreed to hand over a share of its revenue as a condition for export approval. They compare it to earlier Trump administration tactics, in which companies were encouraged to make domestic investments or concessions to avoid tariffs. Officials approve licences after high-level talks The road to the agreement was complex. In April, the Trump administration said it would block H20 exports to China, citing concerns about AI technology transfer. The chip had already been designed to fit within Biden-era export limits on high-end AI processors. In June, Nvidia CEO Jensen Huang met President Donald Trump at the White House. Within days, the administration reversed its decision to block the H20. Even then, the Bureau of Industry and Security…
Filed under: News - @ August 11, 2025 1:15 am