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2w ago

Trump Administration Secures 15% Revenue Share on Nvidia and AMD China AI Chip Exports

Critics argue the arrangement functions like an unconstitutional export tax that could weaken enforcement of U.S.-led multilateral chip controls.

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U.S. President Donald Trump speaks in the Oval Office on August 14, 2025 in Washington, DC.
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Overview

  • The White House granted export licenses for Nvidia’s H20 and AMD’s MI308 AI chips to China on condition that the companies pay 15% of related sales revenue to the U.S. Treasury.
  • Six Senate Democrats led by Chuck Schumer and Elizabeth Warren sent an open letter urging President Trump to reverse the deal by August 22, warning it trades away U.S. technological superiority for profit.
  • Rep. Raja Krishnamoorthi is finalizing legislation to require congressional approval of AI chip export policy after questioning the executive’s legal authority under the Constitution’s Export Clause.
  • China’s Cyberspace Administration summoned Nvidia executives and major tech firms including ByteDance and Alibaba reportedly paused H20 purchases while regulators conduct a national security review.
  • Industry analysts caution that the deal could fracture allied export-control cohesion and foresee persistent smuggling of advanced GPUs through transit hubs in Singapore, Malaysia and the UAE.