Trump administration pay-to-play tactics on AI chip sales to China?

Published August 22, 2025 5:07am ET



In an unprecedented “revenue-sharing” deal, tech developers Nvidia and Advanced Micro Devices agreed to remit 15% of their revenue from artificial intelligence chips sold into China to the U.S. government. In exchange, the companies will be granted export licenses for advanced chips previously banned from sales into China, one of the most lucrative markets for the products and a major national security concern.

Specifically, the deal covers chip giant Nvidia’s H20 chip and AMD’s MI308 chip. The graphic processing units in question are widely seen as preferable to competitors’ offerings for AI work because of their ability to more efficiently process the large amount of data needed for machine-learning tasks.

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