Nvidia and AMD have agreed to share 15% of their revenue from chip sales to China with the U.S. government, part of a deal to secure export licenses for their semiconductors.
The Trump administration had halted advanced chip sales to China in April over national security concerns. However, in July, Nvidia and AMD announced that Washington would permit the sale of Nvidia’s H20 and AMD’s MI308 chips, which are widely used in artificial intelligence development.
President Trump confirmed the terms of this unusual agreement during a Monday press conference, revealing he initially sought 20% of sales revenue but agreed to 15% after negotiations with Nvidia CEO Jensen Huang. Trump described the chips as “obsolete” and called the deal “a little deal.”
Nvidia did not comment on the revenue-sharing details but affirmed it would comply with U.S. export regulations. “We follow rules the U.S. government sets for our participation in worldwide markets,” the company said in a statement. Nvidia emphasized the importance of maintaining America’s leadership in AI technology globally.
AMD did not immediately respond to requests for comment.
The deal raised concerns among U.S. lawmakers. Rep. Raja Krishnamoorthi, the top Democrat on a House committee on China, criticized the arrangement as “a dangerous misuse of export controls that undermines our national security.” He pledged to seek answers on the legal basis of the deal and demanded full transparency from the administration.
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Derek Scissors, a China expert at the conservative American Enterprise Institute, questioned the constitutionality of the deal, warning that “export taxes are unconstitutional” and that this 15% revenue share effectively acts as a tax. He cautioned that the arrangement risks sacrificing national security for revenue.
In July, Nvidia warned that strict export controls could cost the company an additional $5.5 billion and argued that such limits hinder U.S. competitiveness in one of the largest global tech markets. The company also cautioned that U.S. restrictions might push other nations toward adopting China’s AI technologies.
Commerce Secretary Howard Lutnick linked the renewed chip sales to a trade agreement between the U.S. and China on rare earth magnets.
Export restrictions on advanced chips remain a key issue in the AI race between the U.S. and China. Supporters say the controls are vital to slow China’s progress and protect U.S. leadership, while critics point to loopholes and potential unintended consequences. The recent emergence of China’s DeepSeek AI chatbot has intensified worries about how China may use advanced chips to boost its AI capabilities.
Source: Agency