Nvidia and AMD have agreed to hand over 15% of revenue from sales of certain advanced artificial intelligence chips to China as part of a deal with the US government.

The arrangement covers products such as Nvidia’s H20 and AMD’s MI308 chips, which had been restricted under US export controls.

The Trump administration blocked H20 sales to China in April, but Nvidia said last month it had been cleared to resume shipments, with the Commerce Department now issuing export licences.

The Financial Times, which first reported the deal, said the revenue share was a condition for licence approval. It added that Washington had yet to decide how the funds would be used.

Nvidia, which earned $17bn from China in its last fiscal year, confirmed it complies with US rules but did not address the payment directly. AMD, which made $6.2bn from China in 2024, declined to comment.

US Commerce Secretary Howard Lutnick has argued that allowing sales of lower-tier AI chips could help keep Chinese firms reliant on American technology, while more advanced models remain off limits.

Critics questioned the policy’s rationale. “Either selling H20 chips to China is a national security risk… or it’s not,” said Geoff Gertz of the Center for a New American Security.

The US official said the government did not consider the H20 and similar chips a security threat, though details of the 15% payment’s implementation remain unclear. China’s foreign ministry has not commented.