Nvidia and AMD have agreed to pay 15% of their China chip sales to the US government as part of a deal to secure export licenses amid ongoing US-China tensions.
Nvidia and AMD have struck a rare arrangement with the US government, agreeing to hand over 15% of revenue from sales of certain AI chips to China in exchange for export licenses. The deal covers Nvidia’s H20 and AMD’s MI308 accelerators, both tailored for China after Washington’s 2023 export restrictions limited access to top-tier GPUs.
The agreement comes amid an intensifying US-China contest over advanced computing hardware, which powers AI models used in everything from language processing to military simulations. The US has argued that high-performance GPUs can give Beijing an edge in strategic projects, including autonomous weapons and mass-surveillance platforms, and has sought to slow China’s access to them through strict export controls.Deal keeps China market open but sparks security concerns
By accepting the revenue-sharing terms, Nvidia and AMD retain a foothold in one of their most important markets while remaining formally compliant with US rules.
