The U.S. government has imposed an unprecedented arrangement where Nvidia and AMD will pay 15% of their revenue from sales of certain advanced AI chips to China. This deal, brokered during former President Donald Trump's administration, allows the companies to secure export licenses to sell specific chips Nvidia’s H20 and AMD’s MI308 to the Chinese market. The 15% payment acts as a revenue share to the U.S. government in exchange for permitting these exports, which were previously restricted under export bans.
Initially, Trump had requested a 20% cut, but Nvidia and AMD negotiated it down to 15%. The chips allowed for sale are considered less advanced versions to balance U.S. national security concerns while maintaining trade and business interests. The arrangement is unusual and marks a significant shift in trade and technology export policy, effectively monetizing export licenses.
The U.S. government and Trump administration view the move as supporting American competitiveness in the AI sector but it remains a novel and controversial approach.
This is not a traditional tariff but a kind of revenue-sharing deal tied specifically to chip sales to China, reflecting new strategies in U.S.-China technology and trade relations.
