Nvidia and AMD strike major revenue-sharing deal with US government over China chip sales

Nvidia and AMD have reportedly agreed to share 15% of revenue from sales from AI chip sales to China with the U.S. government.The agreement is said to cover revenue from chips such as Nvidia’s H20, which is designed for artificial intelligence applications, a U.S. official told Reuters on Sunday.The arrangement was reportedly discussed following a meeting between Nvidia CEO Jensen Huang and President Trump two days prior to an announcement that the Commerce Department would begin to start issuing H20 export licenses.CHINA IS EXPLOITING OUR GOVERNMENT'S TECH WEAKNESS. WE NEED A RAPID REBOOTExports of the chip had previously been halted by the Trump administration due to national security concerns. While Nvidia has not confirmed the revenue-sharing arrangement directly, it confirmed to Reuters in an email that it is committed to compliance."Nvidia follows rules the U.S. 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," Nvidia said in an email.ILLEGAL IMMIGRANT CHINESE NATIONAL TRIED STEALING SENSITIVE AI MICROCHIPS, DOJ SAYSThe Financial Times, which first reported the deal, said it opens the door for resuming exports, but that the Trump administration has not yet clarified how the revenue will be allocated.Experts say this type of financial concession as a condition for export approval is highly unusual and may blur the lines between national security policy and economic strategy.CLICK HERE TO GET FOX BUSINESS ON THE GOChina remains a key market for both chipmakers. Nvidia earned approximately $17 billion in revenue from China in its last fiscal year, accounting for 13% of total sales. AMD reported $6.2 billion in Chinese revenue in 2024, or 24% of its total.If sales return to previous levels, the U.S. government could collect hundreds of millions per quarter under the 15% arrangement, analysts say.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business