WASHINGTON: US semiconductor leaders Nvidia and Advanced Micro Devices have reportedly agreed to pay the United States government 15% of their revenue from artificial intelligence chip sales to China.
The Financial Times, Bloomberg, and New York Times reported that Nvidia CEO Jensen Huang met with US President Donald Trump to finalise the unusual revenue-sharing arrangement.
Nvidia, the world’s top semiconductor producer, recently became the first company to reach a $4 trillion market value as AI demand surges.
The California-based firm has faced restrictions on exporting advanced chips to China due to US national security concerns.
Last month, Nvidia confirmed Washington would permit sales of its less powerful “H20” chips, designed specifically for the Chinese market.
Before the reported White House meeting, the Trump administration had not granted Nvidia licenses to sell these chips in China.
The Commerce Department began issuing export licenses for chip sales to China on Friday, according to media reports.
Advanced Micro Devices will also pay 15% of revenue from Chinese sales of its MI308 chips, previously barred from export.
The New York Times estimates the deal could generate over $2 billion for the US government.
This development follows recent US tariffs, including a 100% duty on semiconductor imports, exempting firms investing heavily in American manufacturing.
The Trump administration has pursued aggressive trade policies to address imbalances and reshore production. – AFP