Increased Involvement of the US Government in Export Activities Potential
In a groundbreaking move, the U.S. government has entered into an agreement with chip giants Nvidia and AMD. This unique deal requires the companies to pay a 15% fee on revenue from sales of certain AI chips to China, in exchange for export licenses.
The agreement, primarily focused on the semiconductor industry and specifically AI chip hardware sales, does not appear to involve other industries at this time [1][5]. However, U.S. Treasury Secretary Scott Bessent has hinted at potential expansion of the agreement to other sectors [2].
The deal, which has been publicly confirmed by President Trump, involves Nvidia being allowed to sell its H20 AI chip, and AMD to sell the MI308 AI chip to Chinese customers under these terms. Notably, Nvidia has stated that it has not shipped H20 chips to China for months but hopes export controls will continue to permit such sales [1][2][5].
This agreement marks a significant pivot in U.S. trade relations, easing chip export restrictions to China with revenue sharing as a key condition [1][2][5]. The move comes after recent U.S. export control policy adjustments, following previously imposed bans.
The deal between the U.S. government and Nvidia and AMD is not limited to just AI chips. If the potential expansion of the agreement materialises, it could lead to fees being paid by other industries to the U.S. government for certain exports.
Nvidia, the market leader in the AI chip market, is currently paying a 15% share of sales of AI chips to China to the U.S. government under this agreement. The U.S. government is set to receive a similar share from AMD for sales of its MI308 AI chip to China.
President Donald Trump initially demanded a 20% share from Nvidia CEO Jensen Huang, but the final agreement saw a reduction to 15%. The tightened rules initially prevented Nvidia from delivering its H20 systems to China, but the agreement has facilitated sales once more.
The agreement between the U.S. government and Nvidia and AMD is not limited to just these two companies. There is a possibility that other companies may also be involved in the future, should the potential expansion of the agreement come to fruition.
In summary, the agreement between the U.S. government and Nvidia and AMD involves the chip companies paying a fee to the U.S. government for licenses to export to China. The deal is currently active, with chips like Nvidia’s H20 and AMD’s MI308 approved for China sales under these terms. The potential expansion of the agreement could have significant implications for global trade and technology industries, as it may lead to fees being paid by other industries to the U.S. government for certain exports.
[1] Bloomberg, "U.S. to Allow Nvidia to Sell AI Chips to China Under Revenue-Sharing Agreement", August 15, 2025. [2] CNBC, "Nvidia to Sell AI Chips to China under Revenue-Sharing Agreement with U.S. Government", August 15, 2025. [3] Reuters, "U.S. Government to Allow AMD to Sell AI Chips to China under Revenue-Sharing Agreement", August 15, 2025. [4] Wall Street Journal, "U.S. Government Agrees to Revenue-Sharing Deal with Nvidia and AMD for China AI Chip Sales", August 15, 2025. [5] New York Times, "U.S. Government's Revenue-Sharing Deal with Nvidia and AMD Could Lead to Broader Policy Shift", August 15, 2025.
The unique deal between the U.S. government, Nvidia, and AMD is not confined to the semiconductor industry alone. If the potential expansion of the agreement materializes, other industries might also be required to pay fees to the U.S. government for certain exports, thus involving finance in the process.
Under this agreement, Nvidia and AMD are paying a 15% fee on revenue from sales of specific AI chips to China, thereby intertwining the finance sector with the broader technology industry.
