Nvidia and AMD Revenue Sharing Agreement with U.S. Government

Nvidia’s CEO, Jensen Huang, has expressed admiration for President Trump’s stance on artificial intelligence, offering a glimpse into future expectations in a recent report.

According to reports, both NVIDIA and AMD have come to an agreement to allocate 15% of their AI chip sales revenue to the U.S. government. This arrangement reportedly applies to products like NVIDIA’s H20 chip, as indicated by a U.S. official to Reuters.

This deal was agreed upon with Jensen Huang just before the Commerce Department unveiled its plan to start issuing export licenses for the H20. Notably, chip exports were previously halted by the Trump administration over security concerns.

Interestingly, Nvidia hasn’t explicitly detailed the revenue-sharing terms but has confirmed its commitment to compliance with government guidelines through an email to Reuters. They mentioned that they adhere to U.S. rules while engaging in the global market, and though they have not shipped the H20 to China recently, compliance is still a priority.

Reports highlight that this financial concession as a condition for export approval is relatively uncommon and could create a complex intersection between national security interests and economic policies.

It’s essential to note that China remains a significant market for chip makers; in the last fiscal year, Nvidia generated around $17 billion from China, representing about 13% of its overall revenue. Similarly, AMD recorded $6.2 billion from China in 2024, accounting for 24% of its revenue. Should sales reach previous heights, the U.S. government could potentially earn hundreds of millions of dollars every quarter from this revenue-sharing scheme.