Nvidia & AMD Agree to Pay 15% of China Chip Sales to US for Export Licenses

Nvidia and AMD will surrender 15% of their China-based chip revenue to the U.S. government under a landmark export licensing agreement. The arrangement allows both firms to continue supplying AI-critical semiconductors—including Nvidia's H20 and AMD's MI308—to Chinese buyers despite escalating trade tensions.

The unprecedented revenue-sharing model has ignited debate over corporate compliance with export controls. No U.S. company has previously accepted such terms for technology exports. While officials confirm the deal's existence, the Treasury has yet to disclose how these funds will be allocated.

Market analysts note the H20 chip's dual-use potential remains a flashpoint. The Biden administration continues refining export policies that began under Trump-era regulations, with this agreement marking the first tangible compromise between semiconductor giants and federal regulators.