The administration stopped exports of certain high-performance chips in April, citing risks related to their potential use in military and artificial intelligence applications. In July, both companies confirmed they had been granted permission to resume sales of two particular models — Nvidia’s H20 and AMD’s MI308 — which, while powerful, are not the most advanced processors currently produced.
President Trump announced that the initial proposal from the U.S. side was for a 20% revenue share. However, after negotiations, the percentage was lowered to 15%, with Trump noting that Nvidia CEO Jensen Huang played a key role in reaching the final figure. He described the H20 model as “essentially an old chip” and framed the arrangement as a practical compromise that allowed sales to move forward while ensuring U.S. oversight and financial benefit.
Nvidia has not provided direct confirmation of the revenue-sharing details but has emphasized its commitment to following U.S. export regulations. The company underscored the importance of staying competitive in the Chinese market while maintaining America’s position in global AI leadership. Nvidia stated that the United States should avoid repeating past mistakes, such as losing the global race in telecommunications leadership, and instead work to set the international standard for artificial intelligence technologies.
AMD has not issued a public comment on the agreement. Analysts suggest that both companies view the deal as a necessary step to regain market access in China without entirely forfeiting the U.S. government’s concerns over technology security.
The arrangement has faced criticism from some lawmakers. A senior Democrat on a congressional committee focused on U.S.-China competition labeled the deal “a dangerous misuse of export controls,” suggesting it could undermine national security objectives by allowing potentially sensitive technologies to enter foreign markets in exchange for financial gain.
This revenue-sharing structure highlights the complex intersection of economic interests, national security priorities, and global technology competition. With demand for AI hardware in China continuing to grow rapidly, the terms of this deal could set a precedent for how future technology export negotiations are handled between the U.S. government and the private sector.
