Nvidia, AMD to give US 15% of China semiconductor chip sales for export licenses: report

Nvidia and AMD have agreed to pay the U.S. government 15% of their revenues from semiconductor chip sales to China for export licenses, according to a report.

The arrangement is part of a deal with the Trump administration to obtain export licenses to sell Nvidia's H20 chips and AMD's MI308 chips in China, CNN reported.

On Wednesday, Nvidia CEO Jensen Huang met with President Trump.

“We follow rules the US government sets for our participation in worldwide markets,” a Nvidia spokesperson said in a statement. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”

The arrangement regarding the artificial intelligence chips could raise billions of dollars for the U.S. government. However, a social media account linked to Chinese state media said Sunday that Nvidia's H20 chips pose security concerns.

China could choose not to buy the chips, according to the account, Yuyuan Tantian, which is affiliated with state broadcaster CCTV, claiming that they could have “backdoors” that impact their function and security.

“When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,” the account said, following China’s cybersecurity administration also raising concerns over backdoor access in the chips.

Nvidia has denied that its products have backdoors.