Nvidia & AMD Agree to 15% Revenue Share with U.S.
Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) strike rare deal to resume AI-chip exports to China
In a move that has caught both Wall Street and Capitol Hill by surprise, Nvidia, trading as NVDA on the NASDAQ, and AMD, ticker AMD, also on the NASDAQ, have accepted an unusual condition imposed by the U.S. government: sharing 15% of their revenue from AI-chip exports to China. This groundbreaking agreement paves the way for renewed exports of Nvidia’s H20 chip and AMD’s MI308, both critical components in the fast-expanding technology and semiconductor sectors.
At the center of this development is the Trump administration’s decision to block advanced chip shipments earlier this year, citing national security concerns. But behind closed doors, Nvidia’s CEO Jensen Huang negotiated terms that allowed the H20 chip to go back to market—under the stipulation that 15% of sales revenues be directed to the U.S. government. President Trump confirmed during a press briefing that his original demand had been 20%, but that he settled for 15% after talks.
This deal marks a rare instance where private tech companies have agreed to relinquish a portion of international sales in exchange for export licenses—a structural shift in how tech exports might be regulated and taxed moving forward. Experts and lawmakers from both parties have raised red flags over whether this amounts to a disguised export tax, potentially unconstitutional and dangerous for national security. Critics like Rep. John Moolenaar and Rep. Raja Krishnamoorthi called it a “creative taxation scheme” misusing export control policy. Constitutionally, such a requirement has no clear precedent.
For Nvidia and AMD, however, the deal translates to regained access to an immensely valuable market. Both companies had taken significant financial hits due to the export restrictions. Nvidia warned about losing $5.5 billion in exports alone, while AMD suffered even more significant revenue declines. The renewed exports of H20 and MI308 chips open a lifeline—recovery at 85% of previous earnings is decidedly better than none at all.
The broader implications of this agreement ripple across industries. The semiconductor supply chain, AI research, and international trade tech policy are all entangled in what some see as a new model of transactional geopolitics. Rather than outright bans, the U.S. is extracting direct financial benefit while maintaining technological influence over one of the fastest-growing AI markets.
The reaction is a mixed cocktail of relief and concern. Investors breathe easier knowing Nvidia and AMD can ship again—especially given the AI boom’s insatiable demand for hardware. Simultaneously, constitutional scholars and defense hawks caution that turning export control into revenue generation erodes the foundation of national security policy itself.