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Nvidia and AMD To Pay 15% Of China Chip Sales To US

Chip giants Nvidia and AMD have agreed to pay the US government 15% of Chinese revenues as part of an “unprecedented” deal to secure export licences to China.

The US had previously banned the sale of powerful chips used in areas like artificial intelligence to China under export controls usually related to national security concerns.

Security experts, including some who served during President Donald Trump’s first term, recently wrote to the administration expressing “deep concern” that Nvidia’s H20 chip was “a potent accelerator” of China’s AI capabilities.

Under the agreement, Nvidia will pay 15% of its revenues from H20 chip sales in China to the US government. AMD will also give 15% of revenue generated from sales of its MI308 chip in China to the Trump administration, which was first reported by the Financial Times.