Nvidia and AMD to Share 15% of China H20 Chip Revenue with U.S. Government
Nvidia Corporation and Advanced Micro Devices (AMD) have agreed to remit 15% of revenue generated from H20 chip sales in China to the U.S. government. The arrangement, which could total $3 billion for Nvidia in the current fiscal year, follows a reversed export ban imposed in April. China represents 13% of Nvidia's total revenue, making the concession significant despite potential margin pressures.
President TRUMP praised Nvidia CEO Jensen Huang during the announcement, framing the deal as a strategic compromise to maintain access to the Chinese market. Both semiconductor firms will now operate under revised export licenses that mandate revenue sharing—a move analysts describe as a calculated trade-off between profitability and market presence.
