August 11, 2025 – In a significant development in the global AI hardware market, Nvidia and AMD have reached an agreement with the U.S. government to implement a 15% revenue-sharing arrangement for AI chip sales to China.
The move comes amid ongoing U.S.–China trade tensions and Washington’s heightened control over advanced semiconductor exports. The agreement will allow both companies to resume sales of their high-performance AI chips to Chinese customers, provided they share a portion of their revenue with the U.S. government.
Industry analysts view this as a novel regulatory approach that balances national security concerns with the commercial interests of leading American chipmakers. By permitting controlled exports under this revenue-sharing framework, the U.S. aims to maintain oversight of advanced AI hardware distribution without completely cutting off Chinese access to essential components.
For Nvidia and AMD, the deal represents a way to protect a valuable market while avoiding direct conflict with U.S. export restrictions. For China, it means continued—though limited—access to the AI chips needed to power data centers, research labs, and advanced machine learning applications.
This policy could serve as a precedent for future technology trade agreements, especially in sectors where cutting-edge hardware has both commercial and strategic importance.