The New Price of AI Chips for China: NVIDIA and AMD Will Give 15% of Revenue to U.S. Governmen
Ddos 
Reuters reports that NVIDIA and AMD have both reached agreements with the U.S. government allowing them to export certain artificial intelligence chips to the Chinese market—on the condition that 15% of the related sales revenue be remitted to the U.S. government.
This revenue-sharing arrangement applies to NVIDIA’s H20 chips, designed specifically for China, and AMD’s MI308 chips. According to informed U.S. officials, the agreement was a prerequisite for obtaining export licenses, which were formally approved last week.
At present, the Trump administration has not yet determined how the additional revenue will be used.
A spokesperson for NVIDIA stated that the company will comply with U.S. government regulations governing global market participation. They emphasized that although NVIDIA has not shipped H20 chips to China for several months, it hopes to maintain the competitiveness of American companies in both China and the global market within the framework of export controls. AMD has not commented on the report.
The U.S. Department of Commerce has begun issuing licenses for NVIDIA’s H20 chip exports to China. This model was originally developed as a modified version of NVIDIA’s high-performance AI chips, specifically adjusted to comply with export restrictions introduced under the Biden administration, with its computing capabilities deliberately reduced to meet regulatory requirements.
Over the past two years, the United States has imposed strict controls on exports of advanced semiconductors and AI chips to China in an effort to slow the country’s progress in cutting-edge artificial intelligence and supercomputing. Nevertheless, China remains one of the largest and fastest-growing semiconductor markets in the world, prompting U.S. companies to seek ways to re-enter the market while adhering to government rules.
The 15% revenue remittance is widely seen as a compromise between maintaining technological restrictions and allowing companies to retain economic benefits. It ensures sensitive technology exports remain limited while preventing U.S. chipmakers from losing access to China’s vast customer base altogether.
With the licenses now in effect, NVIDIA and AMD will be able to re-enter the Chinese AI chip market in the second half of this year. However, factors such as sales volume, pricing strategies, and competition from domestic Chinese alternatives may shape the ultimate outcome. How the U.S. government chooses to allocate this additional corporate revenue—and whether a similar model will be applied to other export categories—will remain a focal point for the global semiconductor industry.
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