Nvidia and AMD Strike Historic Deal with U.S. Government, Agree to Cede 15% of China Sales Revenue

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(qlmbusinessnews.com . Mon 11th Aug, 2025) London, UK —

Major Shift in Tech Trade: Nvidia and AMD to Pay U.S. 15% from China Sales in Groundbreaking Agreement

In a landmark agreement with the United States government, semiconductor giants Nvidia and AMD will relinquish 15% of their sales revenues from China, a well-placed source has disclosed to the Reporters. This arrangement is a strategic move to obtain export licences for trading within the globe's second-largest economy.

Nvidia has declared its compliance with the regulations set forth by the US government, ensuring its participation in the global market adheres to these guidelines. “Although we have not dispatched our H20 model to China in several months, we are optimistic that the export control laws will enable American firms to remain competitive in China and beyond,” a representative for Nvidia conveyed to the Reporters.

Major Shift in Tech Trade: Nvidia and AMD to Pay U.S. 15% from China Sales in Groundbreaking Agreement

At the time of enquiry, AMD had yet to issue a response.

Details emerging from the agreement indicate that Nvidia is to pay the US administration 15% from its revenue generated by the H20 chip sales in China. Similarly, AMD will part with a 15% share of its earnings from the MI308 chip sales within the same market, a revelation initially made by the Financial Times.

This development follows Washington's embargo on the sale of Nvidia’s H20 chips to Beijing due to security apprehensions, a stance that saw a recent reversal.

The H20 chip, tailored specifically for the Chinese market, emerged in response to export restrictions introduced by the Biden administration in 2023, with its sale prohibited by the previous administration as of April this year.

Jensen Huang, CEO of Nvidia, has been actively engaged in discussions with authorities from both ends, advocating for the reinstatement of the H20 chip sales in China, marking a significant stride in the ongoing dialogue between the tech industry and governmental policy makers.


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