Trump administration secures 15% cut of Nvidia, AMD China chip sales

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00:00NVIDIA and AMD have struck an unusual deal with the Trump administration,

00:05one that sends a slice of their China sales straight to the U.S. Treasury.

00:12Under the arrangement, the chip makers will give the government 15% of revenue

00:17from their age 20 and MI308 artificial intelligence chips sold in China.

00:24In return, they'll get the export licenses needed to keep doing business there.

00:28NVIDIA CEO Jensen Huang met with President Trump at the White House last week to finalize the

00:35agreement. Two days later, the Commerce Department began issuing licenses, a reversal from April when

00:42the administration banned the sales over national security concerns. The White House says the policy

00:49still blocks the most advanced U.S. chips from reaching China. Commerce Secretary Howard Lucknick

00:55said the aim is to stay one step ahead, letting older models compete abroad while safeguarding

01:03top-tier designs. Huang warns a total ban would let China's Huawei dominate the market and invest more

01:12in catching up with U.S. technology. Critics call the deal unprecedented, dangerous, and possibly

01:18unconstitutional, arguing it links export control policy to government revenue. The pushback isn't

01:26limited to Washington. China's cyberspace regulator has summoned NVIDIA over concerns the H20 chip could

01:34contain backdoor security risks. A state media-linked account claimed the chips aren't safe, advanced, or

01:41environmentally friendly, warning consumers might simply stop buying them. NVIDIA denies the

01:47allegation, saying its products have no backdoors or kill switches. Meanwhile, Beijing is accelerating its

01:54own chip development, and reports say it's seeking U.S. concessions on memory chip restrictions as part of

02:02broader trade talks ahead of a possible Trump-Xi summit. For more of our unbiased, straight-fact reporting,

02:09download the Straight Arrow News mobile app, or log on to san.com.