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2w ago

U.S. Strikes 15% Revenue-Share Deal for Nvidia and AMD China Chip Exports

It is the first instance of a U.S. administration imposing a revenue share on exports as a condition for resuming sales.

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

  • The administration confirmed that Nvidia’s H20 accelerators and AMD’s MI308 processors can now be shipped to China if companies remit 15% of related revenue to the U.S. government.
  • Treasury Secretary Scott Bessent has described the arrangement as a “model” for extending revenue-sharing to other industries in future trade deals.
  • Legal experts caution that the levy may violate the Constitution’s ban on export taxes and a federal law prohibiting fees tied to export licenses.
  • National security specialists and lawmakers from both parties warn that monetizing export approvals could weaken U.S. controls and aid China’s AI development.
  • Chinese authorities have summoned domestic firms to explain or halt H20 purchases as the Commerce Department finalizes the licensing and collection process.