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To obtain approval from the United States, Nvidia (NVDA. US) and AMD (AMD. US) will contribute 15% of their Chinese AI chip revenue
Aug 11, 2025
5 min Read
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A US official revealed on Sunday that Nvidia (NVDA. US) and AMD (AMD. US) have agreed to hand over 15% of their revenue from selling advanced computer chips to China to the US government. This agreement involves advanced chips for artificial intelligence (AI) applications, including the Nvidia H20 and AMD MI308.
The government led by US President Donald Trump suspended the sale of H20 chips to China in April, but Nvidia announced last month that the US would allow the company to resume sales and hopes to start shipping soon.
Another US official announced last Friday that the US Department of Commerce has begun issuing licenses to sell H20 chips to China.
When asked if they would agree to pay 15% of the sales revenue from Walt Disney chips to the United States, a spokesperson for Nvidia stated in a statement, "We comply with the rules set by the US government for our participation in the global market
The spokesperson added, "Although we have not shipped H20 to China for several months, we hope that export control rules can enable the United States to compete in China and even globally. ”
AMD has not yet responded to media requests for comment.
According to reports, these chip manufacturers have agreed to this arrangement as a condition for obtaining export licenses for their semiconductor products, including AMD's MI308 chip. The report states that the Trump administration has not yet decided how to use this funding.
US Commerce Secretary Howard Lutnik stated last month that plans to resume sales of artificial intelligence chips are part of negotiations between the US and China on rare earth issues. He referred to H20 as Nvidia's "fourth best chip" in an interview.
Lutnik stated that it is in the interest of the United States for Chinese companies to use American technology, even if the export of the most advanced technology is prohibited, these companies will continue to adopt the American "technology stack".
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