Trump Pushes Unusual Trade Policy: Could Throttle Chinese AI, Make America Billions in One Fell Swoop
Nvidia and AMD are each poised to share 15 percent of their revenue with the U.S. government when their artificial intelligence chips are sold to China.
Back in April, the Trump administration had entirely halted the sale of such devices to the communist nation, as noted by ABC.
But both firms were allowed to resume their activities, provided that they agree to the 15 percent revenue sharing plan, including for H20, the most advanced chip Nvidia is permitted to sell in China, according to Reuters.
The agreement is unusual, but the companies are reportedly complying.
“We follow rules the U.S. government sets for our participation in worldwide markets. While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,” Nvidia said in a statement, per ABC.
Nvidia, AMD to pay 15% of China chip sale revenues to US: report https://t.co/SlOZOWFEYv pic.twitter.com/Ao7oBwRu3q
— New York Post (@nypost) August 11, 2025
“America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”
ABC noted that restrictions on chip sales in China marks the two countries’ race to dominance in the sector.
While some say the restrictions will slow down China so companies in the United States can maintain their lead, others say the restrictions have loopholes.
“Even with scaled-down versions of flagship Nvidia [chips], China could spend and buy enough of them to build world-leading, frontier-scale AI supercomputers,” said Saif Khan, the former director of Technology and National Security at the White House National Security Council under the Biden administration, according to Reuters.
“This could directly lead to China leapfrogging America in AI capabilities.”
The new allowance for selling chips in China came after President Donald Trump met with Nvidia CEO Jensen Huang, according to Fox Business.
Two days after the meeting, Nvidia was granted new export licenses for H2O.
Nvidia earned $17 billion from chip sales in China last fiscal year, accounting for 13 percent of sales.
AMD meanwhile took in $6.2 billion from Chinese sources in 2024, which was 24 percent of its total sales.
The allowance to sell in China comes as Trump signed an order extending a tariff truce with the country for 90 days.
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