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51m ago

U.S. Conditions China AI Chip Exports on 15% Revenue-Sharing Deal With Nvidia and AMD

Treasury Secretary Scott Bessent says the proceeds will go toward debt reduction with the administration eyeing adoption of the model in other industries.

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.
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Overview

  • Nvidia and AMD agreed to forfeit 15% of revenue from H20 and MI308 AI chip sales in China under newly approved export licenses.
  • Treasury Secretary Scott Bessent says the revenue will go toward reducing the national debt and indicates other industries could adopt similar terms.
  • Bipartisan lawmakers and legal experts warn the deal undermines established export-control norms and may violate constitutional limits on export taxes and license fees.
  • National-security analysts caution that monetizing export approvals risks accelerating China’s AI capabilities by restoring access to U.S.-designed chips.
  • Chinese regulators have told domestic firms to justify or avoid using Nvidia’s H20 chips, underscoring Beijing’s unease over dependency on U.S. technology.