Nvidia and AMD Agree to 15% Revenue Share with U.S. for China Chip Sales

Nvidia and AMD have reached an agreement to allocate 15% of their revenue from chip sales in China to the U.S. government as a condition for obtaining export licenses. This arrangement applies specifically to Nvidia's H20 chips and AMD's MI308 chips. The U.S. government has not yet clarified how it will utilize the collected funds. This deal enables both companies to maintain their presence in the Chinese market after the U.S. Commerce Department recently began issuing export licenses, including for Nvidia’s H20 chips. These chips were specially adapted to comply with restrictions from the Biden administration's AI chip export controls. Nvidia expressed hope that export regulations will allow American companies to remain competitive globally. AMD has not yet commented publicly. This arrangement follows a reversal of an April ban on Nvidia’s H20 chip sales to China.