Nvidia and AMD Agree to Divert 15% of China Chip Revenue to US Treasury

Nvidia Corp. and Advanced Micro Devices Inc. have entered an unprecedented revenue-sharing agreement with the U.S. government, surrendering 15% of sales from specific China-market chips. The arrangement covers Nvidia's H20 AI accelerator and AMD's MI308 processor - both designed to comply with existing export controls.

Bernstein analysts project the deal could transfer over $3 billion annually to federal coffers based on Nvidia's anticipated 1.5 million H20 unit sales in 2025. Export license approvals were contingent upon this financial concession, marking a departure from traditional trade enforcement mechanisms.

The Commerce Department confirmed the revenue-sharing requirement as a condition for recently granted export licenses. While Nvidia acknowledged compliance with government mandates, AMD declined substantive comment. Policy experts compare the mechanism to Trump-era negotiation tactics that exchanged regulatory relief for corporate concessions.