Nvidia reportedly strikes a deal with Trump administration to save China business, sharing up to $3 billion in revenue with US. AMD also agrees to give 15% of China revenue in exchange for export licenses. Experts call deals blackmail and in violation of US Constitution. Nvidia stock falls slightly, AMD shares trade flat.

China accounts for 13% of Nvidia’s revenue. Company introduces new chips to sell to China amid US export controls. H20 chips, based on prior-generation Hopper architecture, began sales in 2024. Nvidia hit with export ban on H20 chips in April, later reversed in July over national security concerns from lawmakers.

Wall Street projects Nvidia to recoup $15 billion in lost sales after ban lifted, hitting $20 billion in revenue from China in fiscal year 2026. Analyst believes it’s better for Nvidia to sell AI in China to prevent market dominance by Huawei. Huawei developing chips to rival Nvidia’s H20.

Unclear if revenue sharing with US covers only H20 chips or new Blackwell architecture chips. Nvidia expects China to transition to buying Blackwell-based products to comply with export controls. Analysts warn deal may push China to buy from domestic suppliers like Huawei instead of American companies.

Read more at Yahoo Finance: Nvidia is willing to pay the US government $3 billion to save its business in China