US Makes Nvidia, AMD Pay for China Chip Exports

Nvidia and AMD have become the first US companies required to pay 15% of their AI chip sales revenue from China to the US government in exchange for export licenses, specifically for Nvidia's H20 and AMD's MI308 chips. The Trump administration began issuing these licenses after the agreement, though the use of the collected revenue remains undecided. This move is a rare exception to strict US export controls, coming amid ongoing US-China trade tensions and negotiations over advanced chip exports. Chinese state media have accused Nvidia's H20 chips of containing backdoors and urged a boycott, allegations denied by Nvidia. The agreement allows Nvidia and AMD continued access to the Chinese market while complying with US regulations. Analysts expect the deal and ongoing tensions to create volatility in global semiconductor, technology, and cryptocurrency markets.