Nvidia and AMD will pay the US government 15 percent of their revenue from AI chip sales to China to secure export licenses, a US official confirmed. This move comes as both companies aim to resume chip sales to China after a recent pause.
Nvidia’s H20 chips and AMD’s MI308 chips are subject to this unusual arrangement. The US government set this rule to control advanced chip exports while maintaining market access for American companies.
In April, the Trump administration imposed restrictions on Nvidia’s H20 and AMD’s MI308 chips, effectively blocking sales to China. However, last month both companies announced that the US would resume reviewing their export licenses.
An Nvidia spokesperson said, “We follow the rules the US government sets for our participation in worldwide markets. While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”
The spokesperson added, “America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”
The decision to allow H20 chip sales to China has sparked debate. Both Democrats and Republicans have expressed concern that the move might boost China’s AI technology capabilities.
Commerce Secretary Howard Lutnick defended the decision, noting that China is only getting Nvidia’s “fourth best” chip. He also said the arrangement is part of a broader deal involving rare earth materials with Beijing.
This development highlights the ongoing US effort to balance trade restrictions with the desire to keep American technology competitive in global markets, especially in the fast-growing AI sector.
