Nvidia and AMD to pay 15% share of China AI chip revenue to secure US export licences
Washington’s deal with Nvidia and AMD could reshape the China AI chip market, with analysts warning it may undermine national security arguments for export controls.
Nvidia and Advanced Micro Devices have agreed to hand 15% of their Chinese AI chip sales revenue to the US government in return for export licences.
The arrangement, covering Nvidia’s H20 accelerator and AMD’s MI308 model, is considered unusual and could prove contentious for both companies and Beijing.
The deal reflects Washington’s willingness to link trade concessions to financial payments, but analysts note there is little precedent for such a targeted export levy.
Critics warn the move could undermine the national security rationale for export controls, making it harder to convince allies to adopt similar measures. Beijing, meanwhile, has voiced security concerns over the H20 chip’s performance and alleged vulnerabilities.
Industry observers suggest the payment requirement could discourage further expansion by US chipmakers in China, the world’s largest semiconductor importer, and give local producers an advantage in building domestic capacity.
Chinese firms such as Huawei are already increasing market share amid tighter restrictions on US technology.
The potential sums involved are significant. Before restrictions were imposed, Nvidia had generated over $7 billion in H20 sales to China in a single quarter. In comparison, AMD could earn up to $5 billion annually if full access to the market resumed.
However, uncertainties over demand and regulatory conditions remain.
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