Nvidia and AMD strike major revenue-sharing deal with US government over China chip sales

Core Viewpoint - Nvidia and AMD have reached an agreement to share 15% of revenue from AI chip sales to China with the U.S. government, which may facilitate the resumption of exports of these chips [1][8]. Group 1: Agreement Details - The revenue-sharing agreement reportedly includes sales from Nvidia's H20 chip, designed for artificial intelligence applications [1]. - This arrangement was discussed following a meeting between Nvidia CEO Jensen Huang and President Trump, prior to the announcement of new export licenses for the H20 chip by the Commerce Department [2]. Group 2: Market Impact - Nvidia generated approximately $17 billion in revenue from China in its last fiscal year, representing 13% of its total sales [10]. - AMD reported $6.2 billion in revenue from China in 2024, accounting for 24% of its total sales [10]. - If sales return to previous levels, the U.S. government could potentially collect hundreds of millions of dollars per quarter from the 15% revenue-sharing arrangement [10]. Group 3: Compliance and National Security - Nvidia has not confirmed the revenue-sharing arrangement directly but stated its commitment to compliance with U.S. government regulations [5]. - The Trump administration had previously halted exports of the H20 chip due to national security concerns, indicating the sensitive nature of the technology involved [5].