Trump indicates potential transfer of reduced Nvidia Blackwell AI processors to China
The technology industry has been abuzz with the news of an unusual revenue-sharing deal between Nvidia and AMD, and the US government. This agreement, which is tied to export licenses granted by the US government, requires the companies to pay a 15% revenue share for sales of specific AI chips to China[1][2][3].
The agreement covers Nvidia’s AI chip called the H20 and AMD’s MI308, which are the products allowed for export under this arrangement[2]. The US government has implemented this revenue-sharing condition amidst concerns over technology transfer that could aid China’s advanced weapons development. This policy forms part of strategic export controls targeting semiconductor technologies critical to national security[1].
According to reports, Nvidia CEO Jensen Huang met with then-President Trump on August 6, 2025, to negotiate the terms. Initially, Trump pushed for a 20% cut, but the final agreed amount was 15%[1][2]. President Trump stated that the percentage requested was not for personal gain but "for the country".
Nvidia emphasized that they comply with US government rules for market participation and noted that shipments of the H20 chip to China had paused for months, hoping export controls would enable continued US competitiveness globally[2].
Interestingly, Trump has suggested allowing Nvidia to sell a reduced-performance version of its next-generation Blackwell AI chip to China[4]. However, no specific conditions for this sale have been mentioned by Trump. It's also important to note that no details were provided about the revenue-sharing agreement for the H20 chip sales, and no specific revenue-sharing deal was mentioned for Nvidia's next-generation Blackwell AI chip sales to China[5].
In a twist, the Commerce Department has begun issuing licenses for H20 chip sales[6]. Trump defended the agreement, stating it follows the administration's decision to allow exports of Nvidia’s less advanced H20 AI chips to China[6]. Despite Trump's assertion, the H20 AI chips, according to him, are obsolete[6].
It's crucial to understand that the H20 AI chips sales are different from the potential sale of a reduced-performance version of Nvidia’s next-generation Blackwell AI chip to China[4]. The H20 chip sales are part of the revenue-sharing deal, while the potential sale of the reduced-performance Blackwell chip is a separate matter.
This unprecedented deal reflects both economic and national security considerations, as the US government seeks to maintain control over advanced AI technologies while allowing companies to compete globally[1][2][3].
[1] Reuters. (2025). Nvidia, AMD to pay U.S. 15% of revenue from some AI chip sales to China under deal tied to export licenses. Reuters.com [2] Bloomberg. (2025). Nvidia Says Shipments of H20 Chip to China Paused as Export Controls Take Effect. Bloomberg.com [3] CNBC. (2025). Trump says he demanded 20% of revenue from H20 chip sales, but settled for 15%. CNBC.com [4] CNBC. (2025). Trump suggests allowing Nvidia to sell reduced-performance version of Blackwell chip to China. CNBC.com [5] CNBC. (2025). No specific revenue-sharing deal for Nvidia's next-generation Blackwell AI chip sales to China. CNBC.com [6] Bloomberg. (2025). Commerce Department Begins Issuing Licenses for H20 Chip Sales. Bloomberg.com
- "The unusual revenue-sharing agreement between Nvidia and AMD, and the US government, involves a 15% revenue share for sales of specific AI chips to China, such as Nvidia’s H20 and AMD’s MI308."
- "The business leaders at Nvidia and AMD have found themselves in the midst of political negotiations, complying with the US government's strategic export controls over semiconductor technologies critical to national security."
- "In the field of technology, the export-licensing policy impacting the sales of advanced AI chips like the H20 and potential sales of next-generation AI chips also raises questions about artificial intelligence's role in general news and global business."
