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NVIDIA and AMD set up a major revenue-sharing deal with the US government on China chip sale


NVIDIA and AMD have allegedly agreed to share the 15% revenue from the AI chip from the sale of AI chip with the US government.

The agreement has been asked to cover revenue from chips like NVidia’s H20, which is designed artificial intelligence The US official told Reuters on Sunday.

The system was reportedly discussed after a meeting between Nvidia CEO Jensen Huang and the system. President Trump The Department of Commerce H20 will start issuing export licenses two days before a announcement.

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US President Donald Trump (L) speaks Nvidia CEO Jensen Huang during an event on “Investing in America” at Washington, DC on 30 April 2025 at the Cross Hall of the White House. Trump joined by CEOs to expose companies and them (Andrew Harnik / Getty Image / Getty Images)

Export of chip was first stopped by the Trump administration due to national security concerns. While NVIDIA has not confirmed the direct revenue-sharing system, it has confirmed the raater in an email that it is committed to compliance.

Nvidia said in an email, “Nvidia follows the rules set by the US government for our participation in markets around the world. While we have not sent H20 to China for months, we hope that the export control rules will allow the US to compete worldwide and around the world.”

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The photo Intel processor in this depiction is seen on 15 February 2021 in Antalya, Turkey. (Photo by Mustafa CIFTCI / Anadolu Agency through Getty Image / Getty Image)

The Financial Times, which first reported the deal, said it opens the door to resume exports, but the Trump administration has not yet clarified how revenue will be allocated.

Experts say that this type of financial concession as a condition for export approval is highly unusual and can blur the lines between the national security policy and the economic strategy.

An NVidia Corp Chip during the Taipei Computex Expo at Taipei, Taiwan on Monday, May 29, 2023. (Photographer: I-HWA Cheng / Bloomberg Getty Image / Getty Image)

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China remains a major market for both chipmakers. NVIDIA earned a revenue of about $ 17 billion from China in its last financial year, accounting for 13% of the total sales. AMD reported $ 6.2 billion in Chinese revenue in 2024 or 24% of its total.

If sales returns to previous levels, the US government can collect hundreds of millions per quarter under 15% system, analysts say.



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