Nvidia, AMD to Split 15% China Chip Sales with US Government

Published Date : 12/08/2025 

Nvidia and AMD have agreed to share 15% of their revenue from chip sales to China with the U.S. government as part of a deal to resume exports of advanced chips. This move is aimed at maintaining U.S. leadership in artificial intelligence technology. 

Nvidia and AMD agreed to share 15% of their revenues from chip sales to China with the U.S. government, a U.S. government official has confirmed. This agreement comes after President Donald Trump's administration halted the sale of advanced computer chips to China in April. However, in July, Nvidia and AMD revealed that Washington would allow them to resume sales of the H20 and MI308 chips, which are crucial for artificial intelligence development.

The official, who insisted on anonymity to discuss a policy not yet formally announced, confirmed to The Associated Press the revenue sharing terms of the deal, and said the broad strokes of the initial report by The Financial Times were accurate. The FT reports that Nvidia and AMD agreed to the financial arrangement as a condition for obtaining export licenses to resume sales to China.

Nvidia stated in a response to the AP, 'We follow 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. America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.' AMD did not immediately respond to a request for comment.

Restrictions on sales of advanced chips to China have been central to the AI race between the world’s two largest economic powers, but such controls are also controversial. Proponents argue that these restrictions are necessary to slow China down enough to allow U.S. companies to maintain their lead. Meanwhile, opponents say the export controls have loopholes and could still spur innovation. The emergence of China’s DeepSeek AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.

This agreement is seen as a strategic move to balance economic interests with national security concerns. While it allows U.S. companies to continue participating in the global market, it also ensures that a portion of the revenue generated from these sales supports U.S. interests. The impact of this deal on the broader tech industry and global AI development remains to be seen. 

Frequently Asked Questions (FAQS): 

Q: Why did the U.S. government halt chip sales to China?

A: The U.S. government halted chip sales to China to maintain U.S. leadership in advanced technology, particularly in the field of artificial intelligence. This move was aimed at slowing down China's technological advancements.

Q: What are the H20 and MI308 chips used for?

A: The H20 and MI308 chips are advanced computer chips used in artificial intelligence development. They are critical for tasks such as machine learning, data processing, and other AI applications.

Q: What is the significance of the 15% revenue sharing agreement?

A: The 15% revenue sharing agreement is a condition for Nvidia and AMD to resume sales of advanced chips to China. It ensures that the U.S. government benefits from these sales, which can support national interests and technological development.

Q: How do proponents of export controls justify these restrictions?

A: Proponents argue that export controls are necessary to slow down China's technological advancements and allow U.S. companies to maintain their lead in critical areas like artificial intelligence.

Q: What are the potential risks of these export controls?

A: The potential risks include the creation of loopholes that could still spur innovation in China, as well as the possibility that other countries might fill the gap left by U.S. companies, undermining the effectiveness of the controls. 

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