Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) have agreed to hand over 15% of their revenue from certain chip sales in China to the U.S. government, according to a report by the Financial Times. This agreement is part of a deal with the Trump administration, which recently granted both companies export licenses for specific chips aimed at the Chinese market.
Under the deal, Nvidia will contribute 15% of its H20 chip revenue from China, while AMD will do the same for its MI308 chips. These chips had been restricted from sale earlier this year due to escalating trade tensions between the U.S. and China.
However, relations between the two countries have slightly improved in recent months, prompting the Trump administration to ease some restrictions and allow limited chip exports. Despite this, both companies remain banned from selling their most advanced AI chips in China, due to ongoing Biden-era regulations.
Nvidia’s H20 chip remains highly popular in China, widely used by major AI players like Baidu, Alibaba, Tencent, and DeepSeek. CEO Jensen Huang has openly criticized the U.S. export rules, warning they could cost Nvidia valuable market access.
