US Government Secures 15% Revenue from Nvidia, AMD China AI Chip Sales

President Trump has authorized a groundbreaking deal allowing Nvidia and AMD to export scaled-down AI chips to China, reversing prior export bans rooted in national security concerns. Under this unprecedented agreement, the U.S. government will receive 15% of the revenue from these chip sales, marking the first time export licenses have been monetized in this way. The chips involved, Nvidia's H20 and AMD's MI308, were engineered specifically to comply with export restrictions while maintaining a presence in the Chinese market. Critics, including members of Congress and trade experts, warn that this deal risks compromising U.S. security by potentially enhancing China's AI capabilities and undermines the principle that export controls protect national security rather than serve as revenue sources. Industry analysts caution that this revenue-sharing arrangement could set a troubling precedent globally, potentially transforming export controls into political leverage and destabilizing international trade norms. While the deal provides short-term certainty for U.S. companies, concerns remain about the long-term implications for competition, security, and the integrity of export control policies.