Technology8/10/2025Bloomberg

Nvidia, AMD to Pay US 15% of China AI Chip Sales in Unusual Move

Nvidia, AMD to Pay US 15% of China AI Chip Sales in Unusual Move

Nvidia and AMD have agreed to pay the US government 15% of their revenues from Chinese AI chip sales. This arrangement is part of a deal to secure export licenses for these companies, which is an unusual move. The agreement highlights the ongoing tensions between the US and China over technology and national security concerns. By imposing this revenue-sharing requirement, the US government is seeking to maintain control over the export of advanced technologies, particularly those with potential military applications. The deal may concern both the US companies, who may see it as an additional burden, and the Chinese government, which may view it as an infringement on its own technological development. The move underscores the increasingly complex and politicized nature of the global semiconductor industry, where geopolitics and economic interests often intersect.

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