Nvidia and AMD: 15% Tax to US on China Sales

Nvidia and Advanced Micro Devices (AMD) have agreed to pay the US government 15% of their revenue from artificial intelligence (AI) chip sales in China. This agreement is part of an unusual arrangement to secure export licenses.

According to Bloomberg, Nvidia will cede 15% of its revenue from sales of the AI accelerator H20 in China, while AMD will yield the same percentage from the revenue of MI308.

This agreement reflects the efforts of US President Donald Trump to secure financial returns for the US in exchange for trade concessions. His government has shown a willingness to ease restrictions, such as tariffs, in exchange for significant investments.

The imposition of such a targeted tax on exports is considered unprecedented in modern business history.