Nvidia and AMD have agreed to allocate 15% of their revenue from selling high-end AI chips to China directly to the U.S. government. This arrangement, viewed as a form of “revenue tax,” signals a partial easing by the Trump administration on chip exports to China, while also highlighting Washington’s intent to secure a share of this lucrative trade.
Earlier this year, the Trump administration halted sales of Nvidia’s H20 chips to China. Following months of export restrictions, the ban was lifted last month, with Nvidia announcing its intention to resume shipments in the near future. Two weeks ago, the U.S. Department of Commerce confirmed that it had started granting licenses for chip sales to China.
According to Reuters and the Financial Times, shipments are now moving ahead at full speed. However, from now on, 15% of the revenue generated by Nvidia and AMD from the Chinese market will go straight to the U.S. Treasury.
Speaking to the Financial Times, a Nvidia spokesperson declined to comment directly on the revenue-sharing arrangement, stating instead: “We comply with all the rules the U.S. government sets for our participation in global markets.” The spokesperson added, “We have not shipped H20 to China for months, but we hope export control regulations will allow America to remain competitive both in China and globally.” AMD has so far refrained from making any public comment.
China remains a critical market for both companies. For the fiscal year ending January 26, Nvidia earned $17 billion from China, accounting for 13% of its total revenue. In 2024, AMD generated $6.2 billion from the Chinese market, representing 24% of its overall earnings.
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