US chip policy: Nvidia, AMD agrees to share 15% China sales revenue with Washington; deal tied to AI export license

Nvidia and AMD have agreed to hand over 15% of their revenues from chip sales to China to the US government, a senior US official confirmed, according to the Associated Press. The arrangement is part of a deal allowing the companies to resume sales of specific artificial intelligence chips to the Chinese market.The revenue-sharing terms were first reported by the Financial Times and subsequently confirmed by the official, who requested anonymity as the policy has not been formally announced, AP reported.Washington had halted sales of advanced computer chips to China in April. However, both Nvidia and AMD disclosed in July that the administration of President Donald Trump would permit exports of Nvidia’s H20 and AMD’s MI308 AI chips under new rules.The FT reported that the revenue-sharing arrangement was a condition for obtaining the export licences to restart sales.In a statement to the AP, Nvidia said, “We follow rules the US government sets for our participation in worldwide markets. While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.” AMD has yet to respond to a request for comment.Export restrictions on advanced chips have been a key flashpoint in the AI race between the US and China. Supporters argue that curbs are necessary to slow China’s progress and safeguard America’s technological edge, while critics contend that loopholes undermine their effectiveness and could even spur Chinese innovation.Concerns were renewed earlier this year following the January launch of China’s DeepSeek AI chatbot, which raised questions about how access to high-end chips could boost China’s AI capabilities