The U.S. government has struck an unprecedented deal with chipmakers NVIDIA and AMD: in exchange for export licenses to sell advanced AI processors to China, both firms will now hand over 15% of related revenue to Washington. This arrangement allows restricted chips—NVIDIA’s H20 and AMD’s MI308—to re-enter the critical Chinese market. Netflix?
Key Details:
- Unprecedented revenue-sharing deal: A novel policy landmark—5% stake from chip revenues usually suffices. Now, it’s 15%, signaling heightened scrutiny and strategic leverage.
AxiosThe Washington Post - Pivot from outright ban to conditional access: Instead of indefinite restrictions, export resumes under financial terms—following lobbying by NVIDIA’s CEO.
The Wall Street JournalWinBuzzer - Financial stakes are high: China represented 13% of NVIDIA’s sales (
$17 billion) and 24% of AMD’s ($6.2 billion). The policy shift offers unlocked revenue but at a cost.
techradar.com+10reuters.com+10The Wall Street Journal+10 - Dubbed “highly unusual” by analysts, this deal repositions U.S. export control actions from purely security-oriented to revenue-generating strategies.
fdd.org+4theverge.com+4The Washington Post+4
Policy & Industry Ripples:
- Business gains vs. strategic risk: While chipmakers and markets celebrate resumed sales, concerns loom about strengthening China’s AI ecosystem.
The Wall Street Journal+15tomshardware.com+15techradar.com+15 - Precedent-setting dynamics: Rarely does U.S. policy restrict exports while collecting direct revenue—raising constitutional and long-term geopolitical questions.
marketwatch.com+2timesofindia.indiatimes.com+2
Bottom Line
This revenue-sharing model marks a bold new frontier in technology trade policy. By allowing NVIDIA and AMD limited access to China through a 15% revenue levy, the U.S. has charted a middle path—balancing economic opportunity with national security leverage. Whether this becomes a recurring feature in export controls—or a one-off move—remains to be seen.
