Nvidia and AMD have agreed to pay the U.S. government 15% of their semiconductor sales revenue to China in exchange for export licenses, a deal reported by the Financial Times.

This arrangement allows Nvidia’s H20 chips and AMD’s MI308 chips to be sold in China amid ongoing U.S.-China trade tensions.

While the deal could generate billions for the U.S., China has raised security concerns, accusing the chips of potentially having backdoors—claims Nvidia denies, CNN has reported.

The move is part of broader trade negotiations, with China also seeking eased U.S. export controls on critical AI chip components like high-bandwidth memory chips ahead of a potential Trump-Xi summit.

Written by B.C. Begley