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2w ago

Trump Administration Strikes Revenue-Sharing Deal on AI Chip Exports to China

Treasury plans to apply the revenue to debt reduction, with Commerce negotiating its legal framework under national security scrutiny.

Mark Cuban (left) praised Donald Trump’s (center) deal with Nvidia CEO Jensen Huang (right) requiring the company to share 15% of certain China chip sales with the U.S. government — calling it a “progressive dream” tax, even as critics raise legal and security concerns.
Image
George Washington eyeing a micro chip.

Overview

  • The White House confirmed Nvidia and AMD will resume sales of downgraded AI chips to China in exchange for a 15% cut of those China revenues.
  • Treasury Secretary Scott Bessent said proceeds from the arrangement will pay down U.S. debt and could serve as a model for other industries.
  • The Commerce Department is still ironing out the deal’s legal mechanics amid questions over the Constitution’s Export Clause and statutory limits.
  • National security and trade experts, along with bipartisan lawmakers, warn that monetizing export controls could undercut security measures designed to limit China’s AI advancements.
  • Chinese regulators have pressured domestic tech firms to justify or curb H20 chip purchases, prompting some buyers to reduce orders as Beijing promotes homegrown alternatives.