August 11, 2025 — Nvidia and AMD have reached a groundbreaking agreement with the U.S. government to resume the sale of advanced AI chips to China, under the condition that they pay 15% of the revenue from those sales directly to the U.S. Treasury. The arrangement follows months of export restrictions that had blocked the shipment of certain high-performance processors due to national security concerns.
The deal applies specifically to Nvidia’s H20 AI chip and AMD’s MI308 chip — products designed to skirt earlier U.S. restrictions by offering slightly reduced performance for the Chinese market. Under the new terms, both companies can now resume exports, but must share a portion of the proceeds with the federal government.
Critics have slammed the agreement as unprecedented and potentially unconstitutional, arguing that it functions as an export tax — something expressly prohibited under U.S. law. Former trade and export-control officials have warned that the deal blurs the line between national security measures and revenue generation, potentially undermining trust in the export control system.
Financial markets reacted cautiously to the news, with Nvidia’s shares falling about 1% and AMD’s slipping nearly 2% in early trading. Analysts noted that while the agreement reopens access to one of the companies’ largest markets, the profit-sharing requirement could dent margins and set a precedent for future government intervention in corporate trade deals.
Nvidia and AMD have defended the arrangement, stating that it provides a clear path to re-engage with Chinese customers while staying compliant with U.S. regulations. However, industry experts say the deal highlights the growing complexity of doing business in a geopolitical environment where technology, trade policy, and national security are increasingly intertwined.
This move marks a new chapter in the tech rivalry between Washington and Beijing, signaling that future market access for U.S. chipmakers could come with steep political — and financial — conditions.
Leave a Reply