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Nvidia and AMD Agree to 15% Revenue Share on China AI Chips

The unprecedented pact signals Washington’s leverage over private chipmakers by turning export approvals into a revenue source.

Overview

  • Under the novel export-licensing deal, Nvidia and AMD will transfer 15% of AI-chip sales revenue from China to the US Treasury.
  • The Treasury could collect upward of $2 billion from the revenue-sharing arrangement, extending US control over strategic technology flows.
  • The pact was negotiated following Nvidia CEO Jensen Huang’s White House meeting with President Donald Trump on export terms for advanced chips.
  • Trump has announced intentions to impose 100% tariffs on chips and semiconductors, though no effective date has been set.
  • The deal marks unprecedented government leverage over leading chipmakers as Washington tightens controls and reshapes global supply chains.