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yesterday

U.S. Ties China AI Chip Licenses to 15% Revenue Share by Nvidia and AMD

Commerce has begun approving H20 and MI308 chip exports under the agreement; Treasury has not yet determined how the collected funds will be used.

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AMD, a US-based firm, manufactures advanced AI computer chips series
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U.S. President Donald Trump shakes hands with Nvidia CEO Jensen Huang after Huang delivered remarks in the Cross Hall of the White House during an event on "Investing in America" on April 30, 2025 in Washington, DC. Trump was joined by CEOs to highlight companies and their investments in the United States during the event.

Overview

  • President Trump publicly confirmed that Nvidia and AMD agreed to remit 15% of revenue from H20 and MI308 chip sales to China as a condition for export licenses, down from an initial 20% demand.
  • Commerce Department has begun issuing export licenses for Nvidia’s H20 and AMD’s MI308 chips under the agreement.
  • Nvidia and AMD have pledged to comply with U.S. export rules, with Nvidia expressing hope that the arrangement will allow American firms to remain competitive in China and worldwide.
  • Security experts and lawmakers, including Rep. Raja Krishnamoorthi, argue the deal trades away U.S. national security safeguards for revenue and undermines the integrity of export controls.
  • Analysts at Bernstein Research estimate the 15% share could yield over $3 billion based on projected sales, even as legal experts warn the unusual levy may face constitutional challenges and lacks a clear allocation plan.