 "Nvidia, AMD to give US 15% cut from China chip sales revenue. Image Credit: Reuters")
Nvidia and AMD have agreed to give the US government 15 per cent of their revenue from chip sales in China in exchange for export licenses, the Financial Times reported, citing a US official.
The deal covers Nvidia’s H20 chips and AMD’s MI308 chips. It marks the first time US companies have paid a portion of their revenues to secure export permissions. Licenses for the Chinese market were granted last week under the arrangement, though the Trump administration has not yet decided how to use the funds.
Export control experts say the move is unprecedented. Trump has previously urged companies and countries to invest in the US to “buy down” tariff rates.
An Nvidia spokesperson told Reuters the company follows US rules for global markets. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,” the statement read.
The US commerce department began issuing licenses for Nvidia’s H20 exports to China last week, clearing a major obstacle to the company’s access to a key market. The US had reversed its April ban on H20 sales last month, after Nvidia had redesigned the chip to meet Biden-era AI export restrictions.