Nvidia and AMD to Return 15% of China Chip Sales to U.S. Government Under Trump Deal

U.S. President Donald Trump disclosed during a press conference that Nvidia and AMD have agreed to return 15% of their revenues from chip sales to China to the U.S. government in a deal he described as a “little deal” [1]. The arrangement, which has drawn scrutiny over its legality and implications for national security, comes after the Trump administration had suspended the sale of advanced computer chips to China in April over security concerns [1]. However, in July, the companies announced that Washington would allow them to resume sales of the H20 and MI308 chips, used for artificial intelligence development [1].

Trump stated that he had initially sought a 20% share of sales in exchange for Nvidia securing an export license to sell the “obsolete” H20 chip to China but credited Nvidia CEO Jensen Huang with negotiating the rate down to 15% [1]. While Nvidia has not commented on the specifics of the agreement, the company affirmed its commitment to follow U.S. export regulations and emphasized the importance of maintaining American leadership in AI [1].

AMD did not immediately respond to a request for comment [1]. Meanwhile, Rep. Raja Krishnamoorthi, a leading Democrat on the House Select Committee on China, criticized the reported agreement, calling it a “dangerous misuse of export controls that undermines our national security” [1]. He has pledged to investigate the legal basis of the arrangement and demand transparency from the administration [1].

Derek Scissors, a senior fellow at the American Enterprise Institute, raised constitutional concerns, noting that such export “fees” are effectively taxes and lack legal precedent [1]. He warned that using export controls as a revenue-raising tool could compromise national security and questioned the durability of the arrangement [1].

Nvidia previously estimated that strict export controls on its chip sales to China could cost the company an additional $5.5 billion [1]. The company has also argued that such restrictions harm U.S. competitiveness in a key global market and may push other countries to adopt Chinese AI technologies [1].

Commerce Secretary Howard Lutnick linked the resumption of chip sales to a broader trade agreement involving rare earth magnets [1]. The issue of advanced chip sales to China remains central to the AI competition between the U.S. and China, with supporters arguing that such controls are essential to maintain a lead in technological innovation. Critics, however, highlight loopholes in the current strategy and warn that these measures could inadvertently accelerate China’s AI advancements [1].

Source: [1] ‘We negotiated a little deal’: Trump says Nvidia and AMD will kick back 15% of China chip sales in potentially unconstitutional arrangement (https://fortune.com/2025/08/11/nvidia-amd-china-chip-sales-15-percent-unconstitutional-trump-china/)