Nvidia and Advanced Micro Devices have agreed to contribute 15% of their revenues from the sale of artificial intelligence chips in China to the United States government. The arrangement, brokered under the Trump administration, was a condition for obtaining export licences for these advanced technologies, according to the Financial Times.
A U.S. official confirmed that the deal applies explicitly to Nvidia’s H20 chip and AMD’s MI308 chip. The Financial Times reported that export licences for Nvidia’s H20 began being issued on the Friday after Nvidia’s Chief Executive, Jensen Huang, met with President Trump. AMD did not respond to requests for comment, while Nvidia affirmed that it follows U.S. export regulations.
The deal marks a significant shift in U.S. export control policy. No previous agreement has required corporations to pay a portion of their revenue in exchange for export permissions. Some analysts have raised concerns that such a financial condition may undermine national security principles typically underlying export controls.
Controversy over policy and implications for US-China tech relations
Critics argue that the arrangement blurs the line between trade regulation and revenue generation. Liza Tobin, a former National Security Council adviser under the first Trump administration, commented: “What’s next – letting Lockheed Martin sell F-35s to China for a 15% commission?”
Export-control experts and some officials have questioned whether the sale of such chips constitutes a national security risk, and if so, whether they should be allowed at all, or if not, why additional penalties are applied. The arrangement is seen as politically motivated, particularly amidst ongoing trade negotiations between the U.S. and China, where Beijing continues to seek relaxation of restrictions on high-bandwidth memory chips.
Intel CEO to visit the white house amid scrutiny over China ties
In related developments, Intel’s Chief Executive, Lip-Bu Tan, is expected to meet President Trump at the White House on Monday. The meeting follows public calls by Trump last week for Tan to resign, citing alleged conflicts of interest stemming from his investments in Chinese manufacturing and semiconductor firms, some of which are reportedly linked to the Chinese military.
Tan is expected to use the meeting to outline his personal and professional background, emphasise his commitment to U.S. national and economic security, and propose ways for collaboration between Intel and the U.S. government. The situation has sparked debate among investors, as it is rare for a U.S. president to call for the removal of a corporate chief executive publicly.
Previously, Reuters reported that Tan invested at least US$200 million in Chinese advanced manufacturing and chip companies between 2012 and 2024, some of which have military ties. He also served as CEO of Cadence Design Systems until December 2021. Cadence recently agreed to plead guilty and pay more than US$140 million in settlement of charges related to selling chip-design products to a Chinese military university.
