Nvidia and AMD to pay 15% of China chip sales revenues to the U.S. government, FT reports

In a groundbreaking agreement, Nvidia and Advanced Micro Devices (AMD) will allocate 15% of their revenues from specific chip sales in China to the U.S. government. This arrangement, reported by the Financial Times, represents a significant collaboration between the chipmakers and the White House. The deal allows Nvidia to sell its H20 chips and AMD to market its MI308 chips in China, provided they comply with the revenue-sharing model. This agreement comes at a time when President Trump's tariffs are still impacting the global economy, highlighting the administration's strategy to create exceptions as leverage in negotiations. Nvidia's CEO, Jensen Huang, recently met with President Trump, further solidifying the company's commitment to adhering to U.S. regulations regarding international sales. In response to the Financial Times, Nvidia stated, "We follow rules the U.S. government sets for our participation in worldwide markets." This development follows Trump's announcement of a potential 100% tariff on semiconductor imports unless companies establish manufacturing operations within the United States.