Nvidia, AMD to Pay US 15% of China Chip Sale Revenues

They aim to secure export licences in move rarely seen in modern corporate history

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WASHINGTON - Nvidia and Advanced Micro Devices (AMD) have agreed to pay the US government 15 per cent of their revenues from sales to China of advanced computer chips 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 artificial intelligence (AI) accelerator in China, according to a person familiar with the matter.

AMD will deliver the same share from MI308 chip revenues, the person added, asking for anonymity to discuss internal deliberations.

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's pledge to spend US$600 billion (S$770.2 billion) on domestic manufacturing.

But such a narrow, select export tax has little precedent in modern corporate history.