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2mo ago

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.

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TAIPEI, TAIWAN - APRIL 16: The logo of NVIDIA, an American tech company which designs and supplies GPUs, APIs, and Artificial Intelligence (AI) software and hardware, in Taipei, Taiwan, on April 16, 2025. The United States President Donald Trump's administration has confirmed that tariffs on semiconductors and some other technology products will 'take place in the very near future'. With tariffs and export restrictions expected to be implemented by the American government, electronic products such as iPhone, smartphones, tablet, computer and other digital devices requiring advanced microchips, as well as such global supply chain are likely to be affected. (Photo by Daniel Ceng/Anadolu via Getty Images)
AMD, a US-based firm, manufactures advanced AI computer chips series

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.