Nvidia, AMD to Pay US 15% of China AI Chip Sales in Unusual Move [View all]

Source: Bloomberg

Technology
Nvidia, AMD to Pay US 15% of China AI Chip Sales in Unusual Move

By Hadriana Lowenkron, Michael Sasso, and Ian King
August 10, 2025 at 5:04 PM EDT
Updated on August 10, 2025 at 9:42 PM EDT

Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay 15% of their revenues from Chinese AI chip sales to the US government in a deal to secure export licenses, an unusual arrangement that may unnerve both US companies and Beijing.

Nvidia plans to share 15% of the revenue from sales of its H20 AI accelerator in China, according to a person familiar with the matter. AMD will deliver the same share from MI308 revenues, the person added, asking for anonymity to discuss internal deliberations.

The arrangement reflects US President Donald Trump’s consistent effort to engineer a financial payout for America in return for concessions on trade. His administration has shown a willingness to relax trade conditions like tariffs in return for giant investment in the US — as with Apple Inc.’s pledge to spend $600 billion on domestic manufacturing. But such a narrow, select export tax has little precedent in modern corporate history.

Beijing, which has grown increasingly hostile to the idea of Chinese firms deploying the H20, is unlikely to warm to the idea of a chip tax. Yuyuantantian, a social media account affiliated with state-run China Central Television that regularly signals Beijing’s thinking about trade, on Sunday slammed the chip’s supposed security vulnerabilities and inefficiency.

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Read more: https://www.bloomberg.com/news/articles/2025-08-10/nvidia-amd-to-pay-15-of-china-chip-sale-income-to-us-ft-says