In the first place
Shares of NVIDIA and AMD fell on the market on Monday, after reports said both companies have agreed to pay 15% of the income generated on the sale of AI chip to China to the US government, as part of an unconventional deal with the Trump administration to export licons.
NVIDIA has reportedly agreed to pay the US government 15% of the income that generates it from H20 AI chip sales to China.
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Important facts
According to the Financial timesWho reported this for the first time, Nvidia will pay the 15% reduction on the income it generates from the sale of its H20 AI chips, a cut version of his H100 chip designed to meet the export rules on China.
AMD also agreed to pay a similar reduction in the sale of its MI308 chip designed for China, the report added.
With reference to an unnamed American officer and others who are familiar with discussions, the FT report said that the deal was a necessary condition for the China Export permits Admitted to the companies last week.
It is unclear whether these 15% export taxes will increase the price of these chips for Chinese buyers.
In Premarket Trade early on Monday morning, the shares of Nvidia fell by 1.16% to $ 180.61, while AMDs fell 2.3% to $ 168.79.
US government officials and AMD have not yet responded the issue publicly, but a Nvidia spokesperson told various points of sale that the company has sent to China for months “, but it hopes that” export control rules can compete in China and worldwide “.
How much could the US government earn from this deal?
In May of this year, Nvidia CEO Jensen Huang de Stratechery podcast That he estimates that Nvidia could earn $ 15 billion with the sale of H20 chip to China. This means that the US government will earn no less than $ 2.25 billion from the AI chipping -giant as part of this deal. In the profit call of Q2 2025 last week, AMD reported a $ 800 million Depreciation due to limitations on the export of his MI308 chips to China. If the Chinese sales forecasts of the company are accurate, the US government could earn another $ 120 million.
What do we know about US chip export checks for China?
In a SEC application in April, Nvidia revealed that the Trump administration had set extra restrictions on the export of its H20 AI chips to “China (including Hong Kong and Macau)” or for companies with headquarters in the country. At the time, the company said that the restrictions would result in a hit of $ 5.5 billion in the financial results of the first quarter. Last month, Huang met Trump in the White House, where he Reportedly At the president, he insisted on his company to restart the H20 sales to China, with the argument that the export controls would weaken the US’s lead in artificial intelligence and semiconductors. A few days after the meeting, Nvidia announced that it is planning to resume the H20 sales in China after the US government has “assured the company” “that licenses are granted”. The financial time reported Last week the Commerce department started publishing the licenses on Nvidia, so that it can export its cut AI chips to China.
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Nvidia and AMD to pay 15% of China Chip Sale’s income to the US government (Financial times)
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