Nvidia, AMD to Pay U.S. 15% of China AI Chip Sales Under New Export Deal

KUALA LUMPUR, Aug 10 — Nvidia and AMD have reportedly agreed to give the U.S. government 15% of revenue from sales of advanced AI chips, such as Nvidia’s H20, to China as a condition for export licences, Reuters reported. The arrangement, first revealed by the Financial Times, follows the Trump administration’s April ban on H20 sales, which was later eased. U.S. Commerce Secretary Howard Lutnick said the move was part of negotiations with China on rare earths, describing the H20 as Nvidia’s “fourth-best chip.” Critics, however, argue the deal trades national security protections for Treasury revenue. The administration maintains the sales do not compromise U.S. security. AMD has yet to comment, while Nvidia said it follows all U.S. export rules.