U.S. Wins 15% Slice from Nvidia and AMD’s AI Chip Sales to China

In a highly unusual move, Nvidia and AMD have agreed to hand over 15% of their AI chip revenue from sales 

In China to the U.S. government in exchange for export licenses. The agreement, which covers Nvidia’s H20 and AMD’s MI308 chips, was reached amid high-level talks that included Nvidia CEO Jensen Huang meeting with President Trump.

Starting last Friday, the Commerce Department began issuing the needed export permits—but only after the revenue-sharing arrangement was confirmed. Unsurprisingly, the news rattled the markets: Nvidia shares dipped around 2% in early trading, while AMD saw deeper losses.
This deal has ignited controversy, drawing fire from legal scholars and former export-control officials. They argue that monetizing export permissions blurs the purpose of trade regulation—which should prioritize national security—not revenue generation—and may even violate constitutional prohibitions on export taxes.
On its end, Nvidia stressed that the company fully complies with U.S. rules, adding that while it hasn’t shipped H20 chips to China in months, it hopes fair regulations will allow U.S. tech firms to effectively compete worldwide. AMD has remained quiet.
China, meanwhile, has voiced concerns over the strategy, especially amid allegations—firmly denied by Nvidia—that the H20 contains remote shutdown features. Nvidia insists its chips are secure and vital for the continued development of global AI capabilities.
The move signals a stark shift: export policy is no longer driven purely by strategic caution—it now carries a price tag. With both economic and geopolitical ramifications at play, this deal may well redefine how future export policy negotiations unfold—balancing monetary demands against security imperatives.