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Nvidia and AMD to Pay $2 Billion in AI Chip Deal

8/12/2025

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Summary

Nvidia and AMD's Revenue Sharing

Nvidia and AMD will remit 15% of AI chip sales revenue in China to the U.S. government.
This agreement aims to secure export licenses after a sales ban was lifted.
Critics, including Rep. Raja Krishnamoorthi, voice national security and legality concerns.
The deal could generate over $2 billion for the U.S. Treasury based on projections.
China raises concerns about potential security "backdoors" in Nvidia's H20 chips, which the company denies.

Summary

Nvidia and AMD's Revenue Sharing

Nvidia and AMD will remit 15% of AI chip sales revenue in China to the U.S. government.
This agreement aims to secure export licenses after a sales ban was lifted.
Critics, including Rep. Raja Krishnamoorthi, voice national security and legality concerns.
The deal could generate over $2 billion for the U.S. Treasury based on projections.
China raises concerns about potential security "backdoors" in Nvidia's H20 chips, which the company denies.

1 of 2

Nvidia and AMD's Revenue Sharing

Nvidia and AMD will remit 15% of AI chip sales revenue in China to the U.S. government.
This agreement aims to secure export licenses after a sales ban was lifted.
Critics, including Rep. Raja Krishnamoorthi, voice national security and legality concerns.
The deal could generate over $2 billion for the U.S. Treasury based on projections.
China raises concerns about potential security "backdoors" in Nvidia's H20 chips, which the company denies.

1 / 2