Nvidia, AMD to Share 15% of China Chip Revenues with US/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Nvidia and AMD will give 15% of China chip sales revenue to the U.S. government. The deal follows lifted restrictions on certain AI-focused chips blocked over national security concerns. The move underscores tensions in the ongoing U.S.–China technology rivalry.
Nvidia and AMD China Revenue Deal Quick Looks
- Nvidia and AMD will share 15% of Chinese chip sale revenue with the U.S. government.
- Agreement allows resumed exports of Nvidia’s H20 and AMD’s MI308 AI chips.
- President Trump’s administration previously banned sales in April over national security.
- Revenue-sharing is a condition for export licenses to China.
- Nvidia says export rules are vital for maintaining U.S. AI leadership.
- AMD has not yet commented publicly on the agreement.
- Nvidia estimates strict export rules could cost it $5.5 billion.
- Critics warn controls may push China to develop its own AI chips faster.
- The AI chip export dispute is part of a broader U.S.–China tech race.
- Emergence of China’s DeepSeek AI chatbot has heightened concerns over AI capabilities.
Nvidia, AMD to Share 15% of China Chip Revenues with US
Deep Look
Nvidia and AMD have reached a groundbreaking arrangement with the U.S. government that will see them hand over 15% of their revenue from chip sales to China, a senior government official confirmed Monday. The deal comes just months after the Trump administration imposed a sweeping ban on the export of advanced semiconductors to China, citing national security risks.
The agreement, first reported by The Financial Times, was confirmed to The Associated Press by a U.S. official who spoke on condition of anonymity because the details have not yet been formally announced. According to the source, the revenue-sharing provision was a key requirement for obtaining export licenses to resume selling specific AI chips to the Chinese market.
In April, the administration blocked the sale of advanced processors to China in a bid to slow Beijing’s development of artificial intelligence and other high-performance computing capabilities. However, in July, both Nvidia and AMD revealed that Washington had granted permission to restart exports of the Nvidia H20 and AMD MI308—two high-end chips optimized for AI workloads.
Nvidia’s Position on the Deal
“We follow rules the U.S. government sets for our participation in worldwide markets,” the company said in a statement. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”
The company has previously warned that restrictive export rules could cost it as much as $5.5 billion in lost revenue and hinder U.S. competitiveness in one of the world’s largest technology markets. Nvidia also argued that overly tight controls could backfire by pushing other nations to adopt Chinese AI hardware instead of American-made alternatives.
AMD’s Response
AMD has not yet commented on the revenue-sharing arrangement. The company’s MI308 chips, like Nvidia’s H20, are designed for training large AI models and handling demanding workloads in data centers—making them a strategic product in the intensifying AI arms race.
The Broader Context: US–China Tech Tensions
The U.S. has increasingly tightened restrictions on semiconductor exports to China, viewing the technology as critical to national security. Supporters of the export controls argue that restricting access to the most powerful AI chips could delay China’s development of cutting-edge AI applications, including military uses. They see the revenue-sharing deal as a way to balance security concerns with the economic reality of global chip sales.
Critics, however, say the controls have significant loopholes and may encourage China to accelerate the development of its own semiconductor ecosystem. The debut of DeepSeek, a Chinese-developed AI chatbot in January, reignited fears that Beijing could soon close the gap with U.S. AI capabilities despite the export curbs.
Financial and Strategic Implications
For Nvidia and AMD, China remains a huge potential market, particularly for AI chips that power everything from advanced research to generative AI systems. Securing the ability to sell in China—even with a 15% revenue haircut—may prove financially worthwhile compared to losing access entirely.
For Washington, the revenue-sharing clause provides both leverage and a financial benefit while ensuring continued oversight of exports. It also signals a shift toward using economic agreements rather than blanket bans as tools in the U.S.–China technology rivalry.
The revenue-sharing requirement marks one of the most significant trade-offs yet in the ongoing semiconductor standoff. It illustrates the complexity of managing economic interdependence between the world’s two largest economies while trying to limit strategic risks.
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