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2w ago

White House Moves to Finalize 15% Revenue-Share Deal to Restart Nvidia, AMD AI Chip Exports to China

The arrangement aims to capture 15% of China AI chip revenues to pay down national debt, with its legal framework still unresolved.

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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A worker can be seen in the mobile phone chip factory in Jiashan, Zhejiang, China, May 26, 2021 (uncredited photo for TopPhoto via AP Images).

Overview

  • The White House has agreed in principle to allow Nvidia and AMD to resume exports of specified, downgraded AI chips to China under a 15% revenue-sharing requirement for covered sales.
  • Treasury Secretary Scott Bessent said proceeds from the deal will go toward reducing the U.S. national debt and indicated the approach could be replicated in other industries.
  • Commerce Department officials are still detailing how to implement the revenue-share mechanism, which legal experts warn may conflict with the Constitution’s Export Clause and federal bans on export-license fees.
  • Security and trade specialists argue the arrangement risks making national-security decisions negotiable and could spur Beijing to accelerate its development of homegrown AI chips.
  • China’s Ministry of Industry and Information Technology has urged domestic tech firms to justify H20 purchases, prompting some major buyers to cut orders despite the newly approved export licenses.