11 Aug 2025, 12:28
NVIDIA and AMD will transfer 15% of revenue from chip sales in China to the USA
- NVIDIA and AMD will transfer 15% of revenue from chip sales in China to the USA.
- The agreement allows for the return of sales of chips, adapted to restrictions.
- It is expected that the USA will receive up to $2.25 billion from the agreement with NVIDIA.
Main Information
The companies NVIDIA and AMD have entered into an unusual agreement with the US government, under which they will transfer 15% of revenue from the sale of their chips for artificial intelligence in China to the federal budget of the USA. This decision became a necessary condition for obtaining a license for export.
In particular, this refers to the NVIDIA H20 and AMD MI308 chips, which were adapted for export restrictions. As reported by Financial Times, this agreement allows the companies to return sales of previous generations of chips to Chinese companies.
It is unclear how these 15% taxes will affect the price of chips for Chinese buyers. On Monday, August 11, 2025, NVIDIA shares fell by 1.16%, while AMD shares decreased by 2.3% during pre-market trading.
Financial Implications of the Agreement
It is expected that the US government will receive about $2.25 billion from NVIDIA's sales, which the company estimates as projected indicators in $15 billion revenue from H20 chip sales. AMD can also bring in up to $120 million from the agreement, which is supported by its sales forecasts for the MI308.
Tags: USA/China/Technology/AI