Nvidia and AMD have agreed to hand over 15% of their Chinese revenue from certain advanced chips to the US government in exchange for export licenses, in what analysts are calling an “unprecedented” arrangement amid escalating tech trade tensions. The deal grants the companies access to sell restricted AI chips — Nvidia’s H20 and AMD’s MI308 — in China despite earlier national security concerns.
“If you have a 15% payment, it doesn’t somehow eliminate the national security issue,” said Deborah Elms, head of trade policy at the Hinrich Foundation, questioning whether the Trump administration’s approach prioritizes revenue over security.
The agreement comes after the Trump administration had effectively banned sales of the chips in April, citing fears they could accelerate China’s AI military capabilities. Critics, including Democratic Rep. Jake Auchincloss, argued the deal creates a troubling incentive for the US to sell sensitive technology to Beijing. Nvidia CEO Jensen Huang reportedly met with President Trump last week, lobbying for renewed sales. Beijing has condemned US export controls as “unilateral bullying,” while analysts warn the high cost of market access will add strategic uncertainty for tech vendors.