Nvidia, AMD to hand US 15% of AI chip sales to China

US chipmakers Nvidia and Advanced Micro Devices (AMD) have reportedly agreed to give the federal government 15% of their revenue from artificial intelligence (AI) chip sales to China, according to media outlets including the Financial Times, Bloomberg, and The New York Times.

The unusual arrangement was reportedly finalized after Nvidia CEO Jensen Huang met U.S. president Donald Trump at the White House on Wednesday. AFP has not independently verified the reports.

Nvidia — the world’s largest semiconductor producer and the first company to hit a $4 trillion market value last month — has been at the center of U.S.-China trade tensions, with Washington restricting exports of its most advanced chips on national security grounds.

Last month, Nvidia said U.S. officials had agreed to let it sell its “H20” chips to China — a less powerful model designed for that market — but licenses had yet to be issued. According to the reports, the Commerce Department began granting those licenses on Friday following the White House meeting.

Under the same deal, AMD will also pay 15% of revenue from Chinese sales of its MI308 chips, which were previously barred from export. The New York Times estimates the agreement could bring in more than $2 billion for the U.S. government.

The reported deal comes amid a broader push by the Trump administration to impose steep tariffs, reshore manufacturing, and leverage trade policy for strategic advantage. A 100% tariff on many semiconductor imports took effect last week, with exemptions for companies committing major investments in the United States.