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As part of their agreement with the Trump administration to secure licenses for AI GPU sales to China, NVIDIA and AMD have reportedly agreed to pay 15% of their sales revenue to the US government. According to a report by The Financial Times, both companies received reprieve from the government in July when their chip sales licenses entered processing. A Reuters report on Friday revealed that NVIDIA had received its license. Both NVIDIA and AMD have experienced revenue drops due to restrictions on their China sales. The FT reports that these sales will cover NVIDIA’s H20 GPUs and AMD’s MI308 AI accelerators.
NVIDIA & AMD Enter Unique Revenue Sharing Agreement With US Government for China AI GPU Sales – Report
Reports cited government sources to claim that the US had started granting AI GPU export licenses to NVIDIA. After AMD’s CEO shared in an interview that her firm was yet to receive any approvals, AMD reported a significant drop in operating income attributed partly to its Chinese sales decline. While NVIDIA has started receiving license approvals, it is unclear whether AMD’s applications have also moved forward.
Before the H20 sales restrictions, NVIDIA earned $4.6 billion through the chips in its first quarter, with China accounting for 12.5% of the firm’s total sales. In May, NVIDIA’s shares rose after revealing that the hit to its sales from the H20 restrictions was less than expected.
The global demand for its products and positive analyst estimates for AI’s long-term demand have pushed NVIDIA’s shares to record highs in 2025 and made it the world’s most valuable company again, following the disastrous DeepSeek selloff in January.
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According to The Financial Times, NVIDIA and AMD have agreed to pay 15% of the revenue from their Chinese chip sales to the US government. The sources are unclear on how the government will use this revenue as it works to reduce the trade deficit through tariffs levied on most American trading partners.
NVIDIA noted that it follows “rules the US government sets for our participation in worldwide markets.” It is possible that the Trump administration will use the 15% commission from China AI GPU sales to offset the trade deficit or stimulate American chip manufacturing further. A 15% commission could mean over $2 billion in revenue for the US government from Chinese chip sales in 2025.
The AI GPUs have become a hot topic in the US-China trade discussions, with China eager to lift restrictions. Recent reports suggest Beijing’s interest in procuring advanced high bandwidth memory (HBM) chips, which are also subject to US restrictions due to American technology in their design and production. HBM chips are key components of AI GPUs, implying that future unsanctioned sales would be restricted without new rules.
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According to the report, which company has received its license approval for AI GPU sales to China as of Friday?
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