NVDA, AMD To Pay 15% Of China Chip Sales To US; Report

Just when you thought the tariff-tornado had passed close (but missed) the AI economy, President Trump squeezes just a little bit more…

The Financial Times reported earlier this evening that Nvidia and Advanced Micro Devices have agreed to pay 15% of their revenues from chip sales to China to the US government as part of a deal with the Trump administration to secure export licenses.

According to people familiar with the situation, including a US official, Nvidia would share 15% of the revenue from sales of its H20 chip in China and AMD will deliver the same share from MI308 revenues.

The FT further points out that the quid pro quo arrangement is unprecedented.

According to export control experts, no US company has ever agreed to pay a portion of their revenues to obtain export licenses.

But the deal fits a pattern in the Trump administration where the president urges companies to take measures, such as domestic investments, for example, to prevent the imposition of tariffs in an effort to bring in jobs and revenue to America.

In April, the Trump administration said it would ban H20 exports to China.

However, Trump reversed course in June after meeting Huang at the White House.

Over the following weeks, Nvidia become concerned because the Bureau of Industry and Security [BIS], the arm of the commerce department that runs export controls, had not issued any licenses.

Huang raised the issue with Trump on Wednesday, according to people familiar with the exchange, and BIS started issuing licenses on Friday.

The H20 revenue deal comes as Nvidia and the Trump administration face criticism over the decision to sell the chip to China.

US security experts say the H20 will help the Chinese military and undermine US strength in artificial intelligence.

Some BIS officials have also expressed concern about the reversal, according to people familiar with the situation.

Two people familiar with the arrangement said the Trump administration had not yet determined how to use the money.