Controversial Deal: Nvidia & AMD to Remit 15% of China AI Chip Revenue to U.S. Government

In a highly controversial move, Nvidia and AMD have reportedly agreed to transfer 15% of their AI chip sales revenue from China to the U.S. government. This unprecedented arrangement follows a meeting in Washington between Nvidia CEO Jensen Huang and President Donald Trump, and serves as a condition for obtaining export licenses for Nvidia’s H20 and AMD’s MI308 chips.

The deal marks a dramatic reversal of the April export ban and has sparked legal and political backlash, raising questions about whether such a levy could violate constitutional limits on export taxes. Critics argue that national security is being traded for commercial benefits, while both companies maintain compliance with U.S. regulations.