Nvidia and AMD have agreed to give the U.S. government 15 percent of the revenue from sales of some of their advanced computer chips to China. The deal is a rare precedent and part of talks that could pave the way for limited exports of the next generation of GPUs, despite Washington’s concerns about military use of U.S. AI technology.
U.S. chipmakers have been given permission to resume shipping modified versions of their AI processors, including the Nvidia H20 and AMD MI308, to the Chinese market after a months-long hiatus. President Donald Trump has signaled he may allow a simplified version of the new “Blackwell” GPU to be sold, but has not made a final decision.
Analysts warn that the 15 percent tax could cut margins on sales in China by 5 to 15 percent, while setting a precedent for further taxation of strategic exports. For Nvidia, the Chinese market last year amounted to $17 billion (13% of revenue), for AMD – $6.2 billion (24% of revenue).
Restrictions on the export of high-performance chips to China have been in place for several years due to the risks of their use for military purposes. The US administration is trying to balance national security and economic interests, allowing the export of less powerful models in order to maintain China’s dependence on American technology.
Some experts warn that such “percentage deals” could turn export controls from a security tool into a budget-filling mechanism.
The situation with Nvidia and AMD illustrates a difficult dilemma for the US: on the one hand, the need to control technology, and on the other, the desire to maintain positions in key markets. If the 15% revenue model takes hold, it could change Washington’s approach to strategic exports not only of chips, but also of other high-tech products.
