Nvidia and AMD To Pay 15% of China Chip Sale Revenues To US Government

In an unusual arrangement to secure export licenses, Nvidia and AMD have agreed to give the U.S. government 15% of revenue from certain chip sales to China. The Associated Press reports: The Trump administration halted the sale of advanced computer chips to China in April over national security concerns, but Nvidia and AMD revealed in July that Washington would allow them to resume sales of the H20 and MI308 chips, which are used in artificial intelligence development. President Trump confirmed the terms of the unusual arrangement in a Monday press conference while noting that he originally wanted 20% of the sales revenue when Nvidia asked to sell the 'obsolete' H20 chip to China. The president credited Nvidia CEO Jensen Huang for negotiating him down to 15%. 'So we negotiated a little deal. So he's selling a essentially old chip,' Trump said.

Nvidia did not comment about the specific details of the agreement or its quid pro quo nature, but said they would adhere to the export rules laid out by the administration. 'We follow rules the U.S. government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,' Nvidia wrote in a statement to the AP. 'America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race.'

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