Nvidia and AMD to Share Revenue with US Government for China Chip Exports
In a move that has raised eyebrows across the tech and trade sectors, Nvidia and AMD have reportedly entered into an unprecedented agreement with the US government. As a condition for obtaining export licenses for their advanced semiconductors destined for the Chinese market, these companies will share 15% of their revenue from those specific sales with the US government.
This arrangement impacts Nvidia's H20 chips and AMD's MI308 chips, according to sources familiar with the deal. The funds' intended use remains undetermined.
This revenue-sharing model, agreed upon to secure essential export licenses, is a departure from standard practice. Industry experts indicate that no US company has previously ceded a percentage of its revenue to obtain export clearance. This development echoes past encouragements for companies to invest within the US to mitigate the impact of tariffs.
Nvidia has affirmed its commitment to adhering to US government regulations in its global market activities. The company expressed hope that export control rules would enable American companies to maintain their competitive edge both in China and worldwide, even as H20 shipments to China have been paused for months.
The US Commerce Department recently began issuing licenses for Nvidia to export its H20 chips to China, resolving a significant barrier for the company in accessing a crucial market. This followed a reversal of an earlier ban on the chip's sale, despite it being specifically engineered to comply with current US export restrictions concerning AI technology.
