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Nvidia, AMD to pay 15% of China AI chip sales to US
Business Standard
|August 12, 2025
Nvidia Corp and Advanced Micro Devices Inc agreed to pay 15 per cent of their revenues from Chinese AI chip sales to the US government in a deal to secure export licences, an unusual arrangement that may unnerve both US companies and Beijing.
Nvidia plans to share 15 per cent of the revenue from sales of its H20 AI accelerator in China, according to a person familiar with the matter. AMD will deliver the same share from MI308 revenues.
The arrangement reflects US President Donald Trump's consistent effort to engineer a financial payout for America in return for concessions on trade. His administration has shown a willingness to relax trade conditions like tariffs in return for giant investment in the US — as with Apple Inc's pledge to spend $600 billion on domestic manufacturing.
This story is from the August 12, 2025 edition of Business Standard.
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