U.S. to receive 15% of revenue from chip sales by Nvidia and AMD in China
In a significant development, tech giant Nvidia and AMD have reached an agreement with the U.S. government to resume the sale of certain AI chips to China, with a portion of the revenue going to the U.S. Commerce Department.
The deal, which was announced in mid-July 2025, comes after a ban on exporting powerful AI chips from the U.S. to China, including Nvidia's products, was implemented in 2022. The ban was a response to growing concerns over China's technological advancements and the potential security risks.
Under the terms of the agreement, Nvidia is allowed to sell its H20 AI chip, and AMD its MI308 chip. According to the Financial Times, Nvidia will share 15% of the revenue from H20 chip sales to China, and AMD will share 15% from MI308 chip sales.
The U.S. Department of Commerce began issuing licenses two days after a meeting between Nvidia CEO Jensen Huang and Donald Trump. The deal, described in terms of a percentage share rather than a concrete revenue figure, is expected to bring in significant income for the U.S. authorities. The New York Times estimates that the deal could generate over $2 billion for the U.S.
However, it's worth noting that the Donald Trump administration has yet to decide how to use the funds from these deals.
The forecast by Bernstein Research predicts that Nvidia could sell chips worth more than $15 billion to China by the end of 2025. This figure includes sales under the new agreement, as well as other chips that may be approved for export in the future.
In a related development, AMD announced plans to resume the sale of MI308 chips to China. The move is expected to boost the company's revenue and further solidify its position in the global tech market.
The resumption of AI chip sales to China and the associated revenue-sharing deal mark a significant step in the ongoing relationship between the U.S. and China in the tech sector. As both countries continue to navigate the complexities of technology exports and security concerns, such deals are likely to play a crucial role in shaping the future of this relationship.
[1] Financial Times: "Nvidia and AMD to Share Revenue from AI Chip Sales to China" [2] New York Times: "U.S. and Tech Companies Strike Deal to Resume AI Chip Sales to China"
- The agreement between Nvidia and AMD with the U.S. government, as reported by the Financial Times, includes a revenue-sharing portion with the U.S. Commerce Department.
- The deal to resume the export of certain AI chips to China, as described by the New York Times, could bring in over $2 billion for the U.S. authorities, thanks to the forecasted sales by Nvidia and AMD.
- The resumption of AI chip sales to China, as observed in both Nvidia's H20 AI chip and AMD's MI308 chip sales, indicates a significant shift in the ongoing relationship between the U.S. and China's tech industry, impacting general news, finance, politics, and the technology sector.
