Nvidia and AMD to Pay 15% of China AI Chip Sales Revenue to US Government
40 Sources
[1]
Nvidia, AMD may sell high-end AI chips to China if they pay US a cut | TechCrunch
The AI chip race narrative used to be about U.S. national security, but apparently now it's about tariffs: Nvidia and AMD have agreed to pay the U.S. government 15% of the revenue they make from sales of high-end AI chips to China in exchange for licenses to sell to those chips in the country, the
[2]
Nvidia, AMD to Pay 15% of Revenue From China AI Chip Sales to US Government
Nvidia and AMD will soon begin paying 15% of revenue made from its AI chip sales to China directly to the US government. The unprecedented deal will see the two companies allowed to once again sell their AI-powered chips in China for the first time since April. The financial arrangement is a
[3]
Report says US to charge Nvidia, AMD, 15% China export tax
Nvidia and AMD will reportedly be allowed to resume sales in China if they cough a license fee amounting to 15 percent of sales. Reports in The New York Times and Financial Times state folks familiar with the situation as saying Washington granted both chipmakers a license to sell into China last
[4]
Selling AI Chips to China? Nvidia & AMD Agree Unusual 15% Fee | Explained
Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay 15% of their revenues from Chinese AI chip sales to the US government in a deal to secure export licenses, an unusual arrangement that may unnerve both US companies and Beijing. The arrangement reflects US President Donald Trump's
[5]
US licenses Nvidia to export chips to China, official says
Aug 8 (Reuters) - The commerce department has started issuing licenses to Nvidia (NVDA.O), opens new tab to export its H20 chips to China, a U.S. official told Reuters on Friday, removing a significant hurdle to the AI bellwether's access to a key market. The U.S. last month reversed an April ban
[6]
Nvidia, AMD to pay 15% of China chip sale revenues to US, FT reports
Aug 10 (Reuters) - Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab have agreed to give the U.S. government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors, the Financial Times reported on Sunday. The revenue share
[7]
Nvidia, AMD to pay 15% of China chip sale revenues to US, official says
Aug 10 (Reuters) - Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab have agreed to give the U.S. government 15% of revenue from sales to China of advanced computer chips like Nvidia's H20 that are used for artificial intelligence applications, a U.S. official told Reuters on
[8]
Nvidia, AMD to pay 15% of China chip sale revenue to US, official says
Aug 11 (Reuters) - Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab have agreed to give the U.S. government 15% of revenue from sales to China of advanced computer chips, a U.S. official said on Sunday, in an unusual move likely to faze American companies. U.S. President Donald
[9]
Nvidia's set to regain some China access. But it still faces eroding AI chip market share
Nvidia's H20 chips are likely to return to China, but tech experts don't expect them to be met with the same fanfare in the market in light of new competition and regulatory scrutiny. The Trump administration last month gave Nvidia assurances that it would be permitted to resume sales of its H20
[10]
NVIDIA may give US government a cut of its profits to sell AI chips to China
The debate over whether AI chipmakers should be allowed to sell their products to China has taken an unusual turn. The US government has reportedly given NVIDIA and Advanced Micro Devices (AMD) permission to make the sales but for one big catch: 15 percent of the sales. The news was first reported
[11]
Nvidia, AMD to pay 15% of China chip sale revenue to U.S. government
NEW YORK (AP) -- Nvidia and AMD agreed to share 15% of their revenues from chip sales to China with the U.S. government, a U.S. government official has confirmed. President Donald Trump's administration had halted the sale of advanced computer chips to China back in in April, but Nvidia and AMD
[12]
What Trump's Nvidia and AMD China deal means for the world
U.S. President Donald Trump (L) listens as Nvidia CEO Jensen Huang speaks in the Cross Hall of the White House during an event on "Investing in America" on April 30, 2025 in Washington, DC. Nvidia and AMD have agreed to share some of their revenue from sales to China with the U.S. government,
[13]
Nvidia Just Dodged an $8 Billion Bullet, Thanks to Donald Trump
After months of high-stakes diplomacy and a personal plea to the president, the AI giant has secured a crucial license to sell its specialized chips in China. It's a major victory for the world's most valuable company in the ongoing tech war. The Trump administration has reportedly granted Nvidia
[14]
Nvidia and AMD agree to pay 15% of China chip sales to U.S. government
The arrangement is highly unusual as U.S. tech export controls are usually based on national security imperatives rather than whether they can raise funds for Washington. U.S.-based chipmakers Nvidia and AMD have agreed to pay the United States 15 percent of their revenue from chip sales in China
[15]
Nvidia and AMD reportedly agree to pay 15% of China chip sale revenues to US
Chipmakers agree to quid pro quo deal as condition for obtaining export licenses for Chinese market, FT reports Nvidia and AMD have agreed to give the US government 15% of their revenues from chip sales in China, under an unprecedented arrangement to obtain export licenses for the semiconductors,
[16]
15% of Nvidia and AMD China chip sales to go to US government - new export licenses subject to 'unprecedented' sales tariff despite 'national security problem'
No additional measures have been made to address national security threats The US government has reversed a ban on the sale of Nvidia's H20 chip and AMD's MI308 chip to China under the condition that 15% of the revenue is paid to the US government. The Trump administration expanded efforts to
[17]
Nvidia, AMD exports to China will reportedly face 15% fee
Why it matters: While export controls for sensitive products are nothing new, charging a company 15% of its revenue to sell a particular product to a particular country would be unprecedented. Driving the news: The two chip companies agreed to the fee structure last week, the FT reported, citing a
[18]
Nvidia and AMD will reportedly pay 15% of their Chinese revenue to the US government so they can sell AI-capable chips there, despite warnings from security experts
According to the Financial Times, Nvidia and AMD have joined together in an unprecedented trade agreement that will see them pay the US government 15% of revenue from their chip sales in China. In return, the two tech giants will gain the export licenses they need to sell semiconductors in the
[19]
Chipmakers Nvidia and AMD to pay 15% of China revenue to US government
The unprecedented deal is part of a bargain to secure US export licenses for the Chinese market. Nvidia and AMD have agreed to pay 15% of their revenues from sales of artificial-intelligence chips in China to the US government. The unprecedented deal, first reported by the Financial Times on
[20]
Nvidia, AMD agree to pay US 15% of revenue from sales of AI chips to China
Nvidia chief executive Jensen Huang met with US President Donald Trump at the White House last week and agreed to give the US government a 15 percent cut of Nvidia's revenues from chip sales to China, according to media reports Sunday. The US has been restricting which chips Nvidia and its US rival
[21]
Nvidia, AMD agree to pay US 15pc from chip sales to China
The license comes after the Nvidia CEO met with US president Donald Trump for the second time in weeks. Nvidia and Advanced Micro Devices (AMD) have agreed to pay the US government 15pc of the revenue generated from chip sales in China, in a bid to obtain export licences for the
[22]
NVIDIA & AMD to Now Pay 15% of China Sale Revenue to the US | AIM
"We hope to continue to cooperate with China," Jensen Huang had said previously. US chipmakers NVIDIA and AMD recently received permission to sell their H20 and MI308 AI chips to China, respectively, amid tightened export controls. According to the latest reports, companies will now allocate 15% of
[23]
Nvidia and AMD to pay Trump administration 15% of chip revenue for export licences to China
Paying the government to allow export licences for previously banned export semiconductors is said to be unprecedented. Two major US microchip makers have agreed to pay the Trump administration a portion of sales in return for export licences to send chips to China, according to reports. The
[24]
U.S. Government to Take Cut of Nvidia and AMD AI Chip Sales to China
SAN FRANCISCO -- Nvidia and Advanced Micro Devices are expected to pay the United States 15% of the money they take in from selling artificial intelligence chips to China, as part of a highly unusual financial agreement with the Trump administration. The deal, which was described by three people
[25]
NVIDIA and AMD agree to pay US government 15% of all revenue from AI chips sold to China
TL;DR: NVIDIA and AMD agreed to pay the US government 15% of AI chip sales revenue in China to secure export licenses, following previous restrictions citing national security risks. China remains a significant market, generating billions in revenue for both companies, while the US now permits H20
[26]
Nvidia, AMD Agree to Pay 15% of China Chip Revenues to US, Report Says
Nvidia (NVDA) and Advanced Micro Devices (AMD) plans to resume sales of key AI chips to China could come with some big strings attached. Both companies have agreed to pay 15% of their China chip revenues to the U.S. government in exchange for export licenses, the Financial Times reported
[27]
Nvidia, AMD To Pay 15% Of China Chip Sale Revenues To U.S., Official Says
AMD did not respond to a request for comment on the news, which was first reported by the Financial Times earlier on Sunday. The U.S. Department of Commerce did not immediately respond to a request for comment. The Financial Times said the chipmakers agreed to the arrangement as a condition for
[28]
Nvidia, AMD to pay 15% of China chip sale revenues to US, official says - The Economic Times
US President Donald Trump's administration halted sales of H20 chips to China in April, but Nvidia last month announced the US said that it would allow the company to resume sales and it hoped to start deliveries soon.Nvidia and AMD have agreed to give the US government 15% of revenue from sales to
[29]
Nvidia's $8 Billion Loss May Be Averted As US Approves H20 Chip Exports To China Amid Trad Tensions: Report - NVIDIA (NASDAQ:NVDA)
Nvidia Corporation's NVDA plans to ship its H20 artificial intelligence chips to China have received a significant boost, as the U.S. Commerce Department has reportedly granted the company licenses to resume exports, potentially preventing an $8 billion loss. Nvidia Wins Key Export Licenses For
[30]
NVIDIA & AMD Required To Pay 15% Of Restricted China GPU Sales To US As Part Of License Approval, Says Report
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. As part of their agreement with the Trump administration to secure licenses for AI GPU sales to China, NVIDIA and AMD have reportedly agreed to pay 15% of
[31]
NVIDIA's H20 AI Chips Reportedly See 'Green Light' From Trump Administration for Export to China After Jensen's Recent Visit to The White House
NVIDIA's H20 AI chips are now allowed to be exported to China, as the latest meeting between Jensen Huang and President Trump seems to have worked out. For those confused, NVIDIA's CEO, Jensen Huang, announced a few weeks ago that the company would be selling its H20 AI chips to China after
[32]
Nvidia And AMD Reportedly Agree To Pay 15% Of China Chip Revenues To Trump Administration For Export Licenses: 'Beijing Must Be Gloating' - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)
Nvidia Corporation NVDA and Advanced Micro Devices, Inc. AMD have reportedly agreed to pay 15% of their China chip sales revenues to the U.S. government as part of their deal for export licenses. The Unusual Deal Between US Chipmakers And The Trump Administration Nvidia and AMD, two of the
[33]
Rising Competition In China Threatens Nvidia's Comeback - NVIDIA (NASDAQ:NVDA)
Nvidia NVDA is set to resume sales of its H20 chips in China following a policy shift by the Trump administration. Still, analysts warn that the company may not regain its previous market dominance due to growing domestic competition and regulatory hurdles. In July, the Trump administration
[34]
Nvidia Could Add Billions From China Sales If H20 GPUs Get Green Light From US: Analyst - NVIDIA (NASDAQ:NVDA)
BofA Securities analyst Vivek Arya maintained a Buy rating on NVIDIA Corp NVDA with a price target of $220 on Monday. Arya re-rated Nvidia ahead of its second-quarter earnings call, citing strong sales momentum and long-term earnings potential, while flagging some near-term volatility after the
[35]
Nvidia, AMD to pay 15% of China chip sale revenues to US: report
Nvidia and AMD have agreed to give the US government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors, the Financial Times reported on Sunday. The revenue share applies to Nvidia's H20 chips and AMD's MI308 chips, the report
[36]
NVIDIA, AMD Agree to Share 15% of China Chip Revenue with US
The deal applies specifically to NVIDIA's H20 artificial intelligence chips and AMD's MI308 processors, both designed for the Chinese market to comply with prior US export restrictions. Licenses allowing these sales were issued last week after months of trade tensions between Washington and
[37]
Nvidia, AMD to pay 15% of China chip sale revenues to U.S., official says
Nvidia and AMD have agreed to give the U.S. government 15% of revenue from sales to China of advanced computer chips, a U.S. official said on Sunday, in an unusual move likely to unsettle U.S. companies. U.S. President Donald Trump's administration halted sales of H20 chips to China in April, but
[38]
Washington will levy a 15% tax on AMD and Nvidia's AI chip sales in China.
Nvidia and AMD will have to pay 15% of their revenues from sales in China of advanced chips, such as the H20 used for AI, to the US government, according to an article in the Financial Times that has since been confirmed by two other sources. This measure, which the Wall Street Journal considers
[39]
Nvidia, AMD to pay 15% of China chip sale revenues to US, official says - VnExpress International
U.S. President Donald Trump's administration halted sales of H20 chips to China in April, but Nvidia last month announced the U.S. said that it would allow the company to resume sales and it hoped to start deliveries soon. Another U.S. official said on Friday that the Commerce Department had begun
[40]
Nvidia, AMD to pay 15% of China chip sales to US, official says
STORY: Nvidia and AMD have agreed to give the U.S. government 15% of revenue from sales to China of advanced computer chips. That's according to a U.S. official who spoke to Reuters on Sunday. :: Nvidia It includes chips like Nvidia's H20 that are used for artificial intelligence
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Nvidia and AMD have agreed to pay 15% of their revenue from high-end AI chip sales to China to the US government in exchange for export licenses, marking a significant shift in US-China trade relations and AI chip export policies.
US Government Strikes Unusual Deal with Nvidia and AMD
In an unprecedented move, the US government has reached an agreement with tech giants Nvidia and AMD to allow the sale of high-end AI chips to China, subject to a 15% revenue share
1
. This arrangement marks a significant shift in US-China trade relations and AI chip export policies.
Source: Analytics Insight
The Deal: Revenue Sharing and Export Licenses
Under the new agreement, Nvidia will share revenues from sales of its H20 AI chips in China, while AMD will contribute a portion of its MI308 chip sales
1
. In exchange, the US government has begun issuing licenses for the sale of these chips, effectively lifting the export ban imposed earlier this year2
.Background: Export Restrictions and Policy Shifts
The Trump administration had restricted sales of certain high-performance AI inference chips to China in April, citing national security concerns
1
. However, the ban was paused when Nvidia promised substantial data center investments in the US. The company then announced plans to resume sales of its H20 AI chips, specifically designed for the Chinese market following earlier Biden administration restrictions1
.Financial Implications and Market Response
The export restrictions had significantly impacted both companies' revenues. Nvidia reported a potential $10.5 billion loss in the first half of 2025, while AMD missed out on $800 million in revenue last quarter due to the ban
3
. The new arrangement could see the US government collecting around $900 million or more each quarter from these sales3
.
Source: CNBC
Controversy and Criticism
The decision to approve the sale of these chips has faced criticism from national security experts and former government officials. They argue that supplying China with AI-optimized chips could enable advancements in autonomous weapons systems and military logistics
2
. Nvidia has countered these concerns, stating that the H20 chip does not enhance military capabilities and that the US government has full visibility over all transactions2
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Broader Implications for US-China Trade
Source: AIM
This unusual arrangement reflects President Trump's approach to trade negotiations, often seeking financial payouts for America in exchange for trade concessions
4
. The deal may set a precedent for future trade agreements and could potentially unnerve both US companies and Beijing4
.Future Outlook
As the situation continues to evolve, it remains unclear how this policy will impact the global AI chip market and US-China relations in the long term. The arrangement's success may determine whether similar deals are struck with other companies in the future
2
. The tech industry and policymakers will be closely watching the outcomes of this unprecedented agreement in the coming months.References
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