Nvidia and AMD have reportedly reached an agreement with the U.S. government to cede 15% of their artificial intelligence (AI) chip revenues from China to the U.S. Treasury. This arrangement is a condition for obtaining export licenses for specific AI chips, including Nvidia's H20 and AMD's MI308. This unprecedented move follows extensive discussions and signifies a major shift in U.S.-China trade relations concerning advanced technology.
The U.S. Department of Commerce has begun issuing the necessary export licenses, allowing these American tech companies to continue operating in the Chinese market while contributing financially to the U.S. government. Analysts project significant financial implications, with Nvidia alone potentially generating approximately $23 billion from H20 chip sales in China in 2025. This revenue-sharing model departs from traditional export control policies, which are typically based on national security rather than direct financial contributions. Experts have raised concerns about the constitutionality and precedent-setting nature of this agreement.
Nvidia has confirmed its commitment to complying with U.S. export regulations, stating, "We follow rules the U.S. government sets for our participation in worldwide markets." While Nvidia has not shipped its H20 chips to China for several months, this agreement provides a pathway for renewed engagement. Nvidia has refuted claims that its H20 chips contain backdoors or remote control features, emphasizing its dedication to cybersecurity and adherence to U.S. regulations. This agreement sets a unique precedent that could influence future trade policies and export decisions within the technology sector, creating a new dynamic in global commerce.