Chipmakers Nvidia and AMD have reportedly agreed to give the U.S. government 15 percent of the revenues from their chip sales in China, as part of a negotiation to obtain export licenses from the Trump administration.
The Financial Times reports that the Trump administration has struck a deal with U.S. chipmakers Nvidia and AMD, requiring them to pay 15 percent of their revenues from chip sales in China to the U.S. government. This arrangement was made as a condition for the companies to obtain export licenses for the Chinese market, which were granted last week.
According to people familiar with the situation, including a U.S. official, Nvidia agreed to share 15 percent of the revenues from its H20 chip sales in China, while AMD will provide the same percentage from its MI308 chip revenues. The administration has not yet determined how these funds will be used.
This financial arrangement is the first of its kind, as no U.S. company has ever agreed to pay a portion of their revenues to obtain export licenses. However, it aligns with President Trump’s pattern of urging companies to take measures, such as domestic investments, to bring jobs and revenue to America in exchange for avoiding tariffs.
The deal follows controversy surrounding Nvidia’s H20 chip, which was tailored for the Chinese market after President Biden imposed tough export controls on more advanced chips used for artificial intelligence. In April, the Trump administration initially planned to ban H20 exports to China but reversed course in June after Nvidia CEO Jensen Huang met with President Trump.
Breitbart News reported in July that Nvidia Jensen Haung praised China’s tech sector, which he considers a key market:
During a trip to Beijing, Nvidia CEO Jensen Huang spoke highly of the advancements made by Chinese companies and researchers in the field of AI. In a fireside chat with former Alibaba Group executive Wang Jian at the International Supply Chain Expo on Thursday, Huang specifically commended the AI research conducted by Chinese company DeepSeek.
“It is incredibly well written. It is absolutely A-plus quality science and A-plus quality engineering,” Huang said of DeepSeek’s work. He also noted that Chinese AI researchers lead the world in the number of papers published in the field.
Some security experts and officials have expressed concerns about the decision to sell the H20 chip to China, arguing that it will help the Chinese military and undermine U.S. strength in artificial intelligence. Nvidia has rejected these claims, stating that they are “misguided” and that China cannot use the H20 for military purposes.
Read more at the Financial Times here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
Read the full article here