Nvidia and AMD agree to share 15% of AI chip revenue with US government

Nvidia and AMD have reportedly agreed to share 15% of revenue from AI chip sales to China with the US government. The deal covers revenue from chips such as Nvidia's H20, which is designed for artificial intelligence applications. The arrangement was discussed following a meeting between Nvidia CEO Jensen Huang and President Trump, and may blur the lines between national security policy and economic strategy.

Nvidia and AMD have reportedly agreed to share 15% of their revenue from AI chip sales to China with the U.S. government. The unprecedented arrangement, which covers revenue from chips such as Nvidia's H20 and AMD's MI308, was discussed following a meeting between Nvidia CEO Jensen Huang and President Trump. The deal is part of a broader effort by the Trump administration to secure export licenses for these semiconductors, which are crucial for the AI boom.

The agreement comes as the U.S. continues to implement tariffs on imports of semiconductors and chips, with the White House willing to carve out exceptions as a bargaining tool. According to a person familiar with the matter, Nvidia and AMD will share 15% of the revenue from sales of their respective chips in China with the U.S. government [2].

This deal is significant for both companies, as it removes a significant hurdle to their access to the Chinese market. Nvidia's H20 chips are a major driver of the AI boom, and the company's market value surpassed $4 trillion in July. AMD's MI308 chips are also crucial for AI applications. However, the deal may face scrutiny from Chinese authorities, who have expressed concerns about potential security risks in these chips [1].

While the Trump administration has yet to determine how to use the shared revenue, the arrangement highlights the complex interplay between national security policy and economic strategy. It is unclear whether this deal will set a precedent for other companies seeking export licenses for their products in the U.S. market.

References:
[1] https://www.theguardian.com/technology/2025/aug/10/nvidia-amd-china-chip-sale-revenues
[2] https://news.bgov.com/tech-and-telecom-law/nvidia-amd-agrees-to-pay-us-15-of-china-chip-sale-revenue-1