U.S. semiconductor leaders Nvidia and Advanced Micro Devices (AMD) have reportedly agreed to remit 15% of their revenue from sales of artificial intelligence chips to China to the U.S. government, according to reports from the Financial Times, Bloomberg, and The New York Times on Sunday.
The arrangement follows a meeting between Nvidia CEO Jensen Huang and U.S. President Donald Trump at the White House on Wednesday, where the agreement was reached. Media reports describe the revenue-sharing deal as a rare occurrence in the global technology trade. AFP has not independently confirmed the reports.
Nvidia, which last month became the first company to reach a $4 trillion market capitalization, has been navigating U.S.–China trade tensions, particularly over high-performance AI chips. Washington has restricted exports of certain Nvidia products to China on national security grounds. Last month, the company stated that U.S. authorities had agreed to allow sales of its “H20” chips—lower-powered versions designed specifically for the Chinese market—though licenses had not yet been granted before the reported White House meeting.
According to the reports, the U.S. Commerce Department began issuing licenses for these sales on Friday. Under the agreement, AMD will also contribute 15% of revenue from Chinese sales of its MI308 chips, which had previously faced export restrictions.
Estimates from The New York Times suggest the U.S. government could generate more than $2 billion from the deal. The move comes amid broader Trump administration trade measures, including a 100% tariff on many semiconductor imports implemented last week, with exemptions for companies committing substantial investments in U.S. manufacturing.
