Nvidia and AMD Agree to Share Revenue with US Government on China AI Chip Sales

Two of America’s biggest chipmakers, Nvidia and AMD, have struck a high-stakes deal with the U.S. government that could reshape the global AI technology race and put more money directly into Washington’s hands.

According to officials, the companies will share 15% of revenue from AI chip sales to China with the federal government, a move designed to balance economic opportunity with national security concerns. The arrangement reportedly includes Nvidia’s H20 chip, a high-performance AI processor that had been blocked from export under Trump administration rules.

The deal follows a private meeting between Nvidia CEO Jensen Huang and President Donald Trump, held just two days before the Commerce Department announced it would begin issuing H20 export licenses.

For months, the H20 had been off-limits to Chinese buyers over fears it could boost Beijing’s military AI capabilities. By tying sales to a revenue-sharing model, the U.S. appears to be offering a controlled path for American companies to re-enter the Chinese market without sacrificing oversight.

Key facts on the deal:

• Nvidia earned $17 billion from China in its last fiscal year, roughly 13% of its total sales.

• AMD took in $6.2 billion from China in 2024, accounting for 24% of its revenue.

• At previous sales levels, the U.S. could collect hundreds of millions of dollars per quarter from the 15% cut.

While Nvidia has not confirmed the revenue-sharing terms publicly, it acknowledged its commitment to “follow rules the U.S. government sets” and expressed hope that export controls will allow America to compete globally.

The Financial Times reported that the deal opens the door for resuming halted exports, though Washington has yet to spell out exactly how the government’s share will be allocated.

For the Biden administration, export restrictions were a blunt tool that largely froze sales. The Trump administration’s approach pairing licensing with a direct financial stake could prove far more strategic, ensuring American leadership in cutting-edge AI hardware while still keeping China in check.

With China remaining a critical market for both chipmakers, this arrangement may signal a new model for balancing national security, economic competitiveness, and technological dominance in the high-stakes AI race.

Share this article or subscribe to our newsletter for updates to stay informed on America’s tech advantage.