Ddos 
Earlier reports suggested that the U.S. government had reached an agreement with NVIDIA and AMD, requiring the two semiconductor giants to surrender 15% of revenue from certain AI chip exports to China as a form of profit-sharing—a move widely interpreted as Washington using export licenses as a leverage tool. However, NVIDIA’s Chief Financial Officer Colette Kress emphasized during the company’s latest earnings call that unless the U.S. government formally codifies such a measure into law, NVIDIA has no intention of paying this 15% revenue share.
According to related reports, the Trump administration had floated this unconventional proposal, demanding that NVIDIA and AMD remit part of their China-bound revenue in exchange for export clearance. Observers interpreted it as a workaround for the ban preventing NVIDIA from selling its H20 AI chips in China. Yet, the policy remains in draft form—more of a preliminary framework than an enacted regulation—and has not gone through any official legislative process.
Thus, from NVIDIA’s current standpoint, there is no legal obligation to comply unless Congress or federal agencies establish it as formal law. NVIDIA also warned that forcing such a scheme could trigger lawsuits, increased operational costs, and distortions in market competition. The company underscored that any government-imposed revenue-sharing model would unfairly advantage rivals not subject to the same requirements, potentially harming NVIDIA’s long-term competitiveness.
Despite these regulatory hurdles, NVIDIA’s financial performance remains staggering. For the quarter ending July 27, 2025, the company posted record revenue of $46.7 billion, a 56% year-over-year increase, with net income surging to $26.4 billion. Remarkably, NVIDIA has sustained over 50% annual growth for nine consecutive quarters, even without significant sales of the H20 AI chips in China.
Originally, NVIDIA projected the H20 chips could generate $8 billion in revenue, but U.S. government restrictions—driven by concerns over potential military applications—prohibited their sale to China. As a result, H20 shipments last quarter totaled a mere $180 million, sold exclusively to non-Chinese customers.
Market sources now suggest that NVIDIA has already pivoted its product strategy, actively developing a new chip based on the Blackwell GPU architecture, specifically tailored for the Chinese market.
Related Posts:
- Caught in the Crossfire: NVIDIA Halts H20 Chip Production Amid U.S.-China Tensions
- CrowdStrike Outage: Microsoft Points Finger at EU Agreement
- 34 tech firms signed “Cybersecurity Tech Accord” agreement that does’nt support government hacking operations
- The New Price of AI Chips for China: NVIDIA and AMD Will Give 15% of Revenue to U.S. Governmen
- Hacker group threatens to expose Nvidia driver and firmware data
Support Our Threat Intelligence
If you find our CVE report and cybersecurity news helpful, consider supporting our work.
Buy Me a Coffee
PayPal
