Nvidia AMD chip sales revenue shared 15% with US government for China

According to what NVIDIA and AMD agreed to share 15 % of the sales of sales of artificial intelligence chips to China with the US government.

A US official told Reuters on Sunday that the agreement covers revenue from chips like Nvidia’s H20, which was designed for artificial intelligence applications.

According to what was reported, the arrangement was discussed after a meeting between the CEO of Nvidia Jensen Huang and President Trump two days before the announcement that the Ministry of Trade will start issuing the export licenses of H20.

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SIM exports have already been stopped by the Trump administration due to national security concerns. Although NVIDIA did not confirm the arrangement of revenue sharing directly, he emphasized Reuters in an email committed to compliance.

“NVIDIA follows the rules determined by the US government to participate in global markets. While we have not shipped H20 to China for several months, we hope that export control rules will allow competition in China and all over the world.”

Chinese national illegal immigrant attempted to steal sensitive international organization chips.

In these illustrations, the Intel processor appears in Antalya, Türkiye on February 15, 2021. (Mustafa Ciftci / Anadolu Agency via Getty Images / Getty Images)

The Financial Times, which first reported the deal, said it opened the door to resume exports, but the Trump administration has not yet clarified how to allocate revenues.

Experts say this type of financial concession as a condition for approval of export is very unusual and may comb the lines between the national security policy and the economic strategy.

A nvidia corp. Chip during the Taipei Computex exhibition in Taipei, Taiwan, on Monday, May 29, 2023. (Photographer: I-Hwa Cheng / Bloomberg via Getty Images / Getty Images)

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China is still a major market for each of the chips. NVIDIA has received about $ 17 billion of China’s revenues in the last fiscal year, which represents 13 % of total sales. AMD recorded 6.2 billion dollars in Chinese revenue in 2024, or 24 % of its total.

If sales are returned to previous levels, the American government can collect hundreds of millions per quarter in the arrangement of 15 %, says analysts.