Nvidia and AMD to Pay U.S. 15% of China Chip Revenues

According to recent reports, Nvidia and AMD have struck a deal with the U.S. government that allows them to resume selling certain AI chips to China—but with a catch: they must pay 15% of the revenue from those sales to the government.

What’s Behind the Deal?

Export Restrictions: The U.S. had previously banned exports of advanced AI chips to China, citing national security concerns.

New Chips: Nvidia’s H20 and AMD’s MI308 are modified versions designed to comply with U.S. regulations.

Revenue Sharing: In exchange for export licenses, both companies agreed to give 15% of their China revenue from these chips to the U.S. government.

Security Allegations: Chinese media accused Nvidia’s H20 chip of having a “backdoor” that could allow remote shutdown. Nvidia denied this claim.

Why It Matters:

This is the first time U.S. companies are required to share revenue with the government for export approval.

It reflects the strategic importance of AI chips in the tech arms race between the U.S. and China.

It could set a precedent for future tech exports and government oversight.