WASHINGTON, DC – US President Donald Trump’s administration has struck an unprecedented deal requiring Nvidia and AMD to give 15% of revenues from certain chip sales in China to the US government in exchange for export licences.
The agreement covers Nvidia’s H20 AI chip and AMD’s MI308 chip, both previously restricted under US export controls targeting advanced technology sales to China. Trump said Nvidia’s H20 is “old” and “obsolete,” and claimed he personally negotiated the terms with Nvidia CEO Jenson Huang, describing it as a “release” from the ban.
The Financial Times, which first revealed the deal, reported that the administration has yet to decide how to use the collected funds. Nvidia would not confirm or deny the arrangement but said it complies with US export rules. AMD declined to comment.
Trade experts say the move sets a dangerous precedent by tying national security export controls to monetary payments. Former US trade official Christopher Padilla called the deal “astonishing,” likening it to “a mix of bribery and blackmail.” Peter Harrell of the Carnegie Endowment warned that, by this logic, foreign buyers could theoretically “pay for” access to even the most sensitive US military technologies.
The Trump administration had only last month reversed a ban on Nvidia’s H20 sales to China, underscoring the high stakes in the global race for AI and semiconductor dominance.
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