Nvidia Corp. and Advanced Micro Devices Inc. have reached an agreement with the U.S. government to pay 15% of their revenue from sales of Chinese AI chips.
The deal includes Nvidia’s H20 AI accelerator and AMD’s MI308 chips — which were banned earlier this year by the Trump administration and now require export licenses to sell.
The agreement follows President Trump’s threat to impose a 100% tariff on imported chips unless companies also invest in manufacturing in the U.S.
Beijing is unlikely to support this deal, as China has become more hostile toward Chinese companies deploying the H20.
Experts worry that the Nvidia and AMD revenue-sharing agreements might now lead the White House to target other industries and products.
After the announcement, Nvidia’s stock dropped 1.5%, and AMD’s stock fell about 3% in premarket trading.
By CEO NA Editorial Staff
