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US Conditions China AI Chip Licenses on 15% Revenue Share from Nvidia and AMD

The Commerce Department has begun issuing export licenses for H20 and MI308 chips under a deal critics say undermines export controls.

Overview

  • Nvidia and AMD agreed to give the US government 15% of revenue from their China sales of H20 and MI308 AI chips as a precondition for export licenses.
  • The Commerce Department has started approving licenses for these downgraded chip variants after pausing shipments under April’s export freeze.
  • President Trump said he initially sought a 20% cut before negotiating the rate down to 15% during a White House meeting with Nvidia CEO Jensen Huang.
  • Bipartisan lawmakers and constitutional experts warn the arrangement may monetize export controls and face legal challenges over its legitimacy.
  • China’s regulators continue to contest the H20’s security, summoning Nvidia over alleged backdoors even as Beijing accelerates efforts to develop its own AI semiconductors.