U.S. Strikes Unprecedented Deal: Nvidia and AMD to Share 15% of China AI Chip Revenue with Government for Export Licenses

In a significant and unconventional development, semiconductor giants Nvidia and AMD have agreed to pay the U.S. government 15% of revenues from AI chip sales to China as a condition for securing export licenses, according to officials and reporting confirmed by CBS News. This rare revenue-sharing arrangement, established after negotiations between the companies and the Trump White House, comes amid tightening export restrictions on advanced technology deemed sensitive to U.S. national security. The deal reflects the intensifying technological rivalry between the U.S. and China and marks an extraordinary intervention by Washington in private-sector international sales. While industry advocates argue such controls are vital for maintaining America’s tech advantage and security, it remains unclear how the government intends to use the proceeds from these revenues. Shares for both companies edged up following the announcement.

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