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.