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2w ago

Trump Administration Ties AI Chip Exports to China to 15% Revenue Sharing

The novel condition turns national-security curbs into a pay-for-access tool that may presage broader government stakes in key tech firms.

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.
Intel CEO Lip-Bu Tan at the White House for a meeting with President Donald Trump
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Overview

  • Nvidia and AMD agreed to give the U.S. government 15% of their sales revenue from H20 and MI308 AI chips to China as a condition for export licenses.
  • The Commerce Department’s Bureau of Industry and Security has begun issuing licenses for the downgraded chips despite reports that it was not consulted on the revenue-sharing framework.
  • Lawmakers from both parties and legal scholars argue the 15% cut resembles an export tax illegal under the Constitution and federal law.
  • Chinese authorities have summoned Nvidia representatives and warned domestic companies against using the H20 chips over perceived security risks.
  • The White House is discussing applying the model to other sectors and is reportedly considering a U.S. equity stake in Intel to bolster domestic chipmaking.