U.S. to receive 15% from Nvidia, AMD AI chip sales to China

Nvidia and Advanced Micro Devices (AMD) will pay the United States government 15% of revenue from certain artificial intelligence (AI) chip sales to China as part of a new export licensing arrangement, according to multiple media reports. The move marks a significant development in U.S. export control policy amid ongoing technology and trade tensions with Beijing.

Export license deal for high-end AI chips

The reported agreement allows both companies to continue selling modified AI chips to China despite existing U.S. restrictions. The arrangement covers Nvidia’s H20 graphics processing unit (GPU) and AMD’s MI308 AI accelerator, which were designed to comply with earlier export control rules.

In early 2025, the U.S. government, under the Trump administration, halted exports of these chips, citing national security concerns. The new deal enables resumption of sales in exchange for a 15% share of revenues from China-bound shipments, paid to the U.S. government. Licences for these exports have reportedly already been issued by the U.S. Commerce Department.

Potential multibillion-dollar revenue impact

Analysts estimate the revenue implications could be substantial. According to Bernstein Research, Nvidia could generate approximately USD 23 billion in China sales from the H20 chip alone in 2025. The 15% levy would translate into billions of dollars in payments to the U.S. government if demand remains strong.

AMD’s sales figures for the MI308 in China have not been disclosed, but the product targets the same fast-growing AI market segment, suggesting potentially significant contributions.

Policy controversy and constitutional questions

The deal has drawn attention for its departure from traditional export control frameworks. Experts have noted that U.S. export controls typically restrict or ban technology sales outright rather than monetise them. Some legal scholars have questioned whether the 15% levy could be challenged under constitutional provisions prohibiting export taxes.

Critics argue that if AI chips pose genuine national security risks, allowing their sale in exchange for revenue contradicts the stated purpose of the restrictions. Others suggest the policy may reflect a balancing act between safeguarding security interests and maintaining U.S. companies’ competitiveness in the global AI hardware market.

Company and government responses

Nvidia has stated that it is complying with all U.S. government regulations but has not confirmed specific terms of the reported agreement. The company expressed hope that export rules would continue to enable American semiconductor firms to compete internationally.

AMD has not issued a public comment on the arrangement. The U.S. Commerce Department has also declined to provide details on the implementation process, including how the 15% payments will be tracked or utilised. Chinese authorities have not publicly responded to the reports.