Nvidia to Pay US Government 15% of Chinese Semiconductor Sales Revenue to Obtain Export Licenses

Nvidia and AMD have agreed to pay the US government 15% of their revenues from semiconductor sales to China in exchange for export licenses as part of a deal with the Trump administration to obtain export licenses to sell Nvidia’s H20 chips and AMD’s MI308 chips in China.

According to The Financial Times, Nvidia CEO Jensen Huang met with President Donald Trump on Wednesday, where the arrangement came up.

“We follow the rules the US government sets for our participation in worldwide markets,” a Nvidia spokesperson said in a statement. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”

China’s AI Chips Demand

AI chips are in extremely high demand in China, and the arrangement could raise billions of dollars for the US government. Nvidia’s H20 chips, however, pose security concerns for China, as a social media account linked to Chinese state media said on Sunday, which might make Chinese officials unwilling to comply.

China’s access to American technology, especially high-end chips that can be used in the development of artificial intelligence, has become a key issue in trade and tech frictions between the rival economies as both seek tech dominance.

A trade truce between the two countries that reduced triple-digit tariffs is set to expire on August 12, though officials have signaled an extension could come into effect following talks in Sweden last month.