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https://www.nytimes.com/2025/08/10/technology/us-government-nvidia-amd-chips-china.html?campaign_id=9&emc=edit_nn_20250811&instance_id=160309&nl=the-morning&regi_id=122976029&segment_id=203666&user_id=b25c5730c89e0c73f75709d8f1254337

The Trump administration reached an agreement with Nvidia and AMD to receive 15% of their AI chip sales revenue in China. This unusual deal, driven by President Trump, aims to leverage export licenses and potentially generate over $2 billion for the U.S. government.

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AI Headline
U.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to China
Simplified Title
US Government Takes Cut of Nvidia and AMD AI Chip Sales to China
AI Excerpt
The Trump administration reached an agreement with Nvidia and AMD to receive 15% of their AI chip sales revenue in China. This unusual deal, driven by President Trump, aims to leverage export licenses and potentially generate over $2 billion for the U.S. government.
Subject Tags
Artificial Intelligence China Nvidia AMD Trump Administration Export Controls Semiconductors US Government
Context Type
News
AI Confidence Score
1.000
Context Details
{
    "tone": "informative",
    "perspective": "neutral",
    "audience": "general",
    "credibility_indicators": [
        "expert_quotes",
        "anonymous sources",
        "reporting from San Francisco"
    ]
}

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Complete details about this source submission.

Overall Status
Completed
Submitted By
Donato V. Pompo
Submission Date
August 11, 2025 at 1:38 PM
Metadata
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    "updated_at": "2025-08-11T13:39:12.574347Z",
    "parsed_content": "Trump AdministrationliveUpdatesAug. 11, 2025, 9:19 a.m. ET20m agoTariff TrackerFlorida\u2019s \u2018Alligator Alcatraz\u2019Separating FamiliesMajor Shift at E.P.A.Approval RatingsAdvertisementSKIP ADVERTISEMENTSupported bySKIP ADVERTISEMENTU.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to ChinaIn a highly unusual arrangement with President Trump, the companies are expected to kick 15 percent of what they make in China to the U.S. government.Share full articleJensen Huang, Nvidia\u2019s chief executive, last month. Mr. Huang and President Trump struck the 15 percent arrangement at a White House meeting last week.Credit...Kenny Holston\/The New York TimesBy Tripp MickleReporting from San FranciscoAug. 10, 2025\u9605\u8bfb\u7b80\u4f53\u4e2d\u6587\u7248\u95b1\u8b80\u7e41\u9ad4\u4e2d\u6587\u7248Sign up for the On Tech newsletter. Get our best tech reporting from the week. Get it sent to your inbox.Nvidia and Advanced Micro Devices are expected to pay the United States 15 percent of the money they take in from selling artificial intelligence chips to China, as part of a highly unusual financial agreement with the Trump administration.The deal, which was described by three people familiar with the agreement who spoke anonymously because they didn\u2019t have permission to discuss it publicly, comes a month after Nvidia received permission to sell a version of its artificial intelligence chips to China.While the Trump administration publicly said a month ago that it was giving the green light to Nvidia to sell an A.I. chip called H20 to China, it did not actually issue the licenses making those sales possible.On Wednesday, Jensen Huang, Nvidia\u2019s chief executive, met with President Trump at the White House and agreed to give the federal government its 15 percent cut, essentially making the federal government a partner in Nvidia\u2019s business in China, said the people familiar with the deal. The Commerce Department began granting licenses for A.I. chip sales two days later, these people said.Though Mr. Huang has led negotiations with the White House, Nvidia isn\u2019t the only company that sells A.I. chips to China. AMD has an A.I. chip called the MI308 and in April the Trump administration also banned sales of it to the Chinese.There are few precedents for the Commerce Department agreeing to grant licenses for exports in exchange for a share of revenue. But the unorthodox payments are consistent with Mr. Trump\u2019s increasingly interventionist role in international business deals involving American companies. In June, the administration approved investment by Nippon Steel, a Japanese company, in U.S. Steel in a deal that included a so-called golden share in the company, a rarely used practice where the government takes a stake in a business.Want to stay updated on what\u2019s happening in China? Sign up for Your Places: Global Update, and we\u2019ll send our latest coverage to your inbox.The administration is also using tariffs as a stick to bring manufacturing to the United States. Last week, Mr. Trump said that tech companies would have to pay a 100 percent tariff on semiconductors made abroad, unless they invested in the United States.The deal agreed to last week could funnel more than $2 billion to the U.S. government. Nvidia was expected to sell more than $15 billion worth of its H20 chip to China through the end of the year, and AMD was expected to sell $800 million, according to Bernstein Research.The Commerce Department, White House and AMD didn\u2019t provide comment on Sunday.Ken Brown, a spokesman for Nvidia, said that the company follows the U.S. government\u2019s rules for sales abroad. \u201cWhile we haven\u2019t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,\u201d he said.The deal to license A.I. chips caused immediate outcry among national security experts who have been opposed to A.I. chip sales to China. They worry that the Trump administration\u2019s decision to leverage export licenses for money will encourage Beijing to pressure other companies to make similar arrangements to loosen restrictions on other technology like semiconductor manufacturing tools and memory chips.\u201cThis is an own goal and will incentivize the Chinese to up their game and pressure the administration for more concessions,\u201d said Liza Tobin, who previously served as China director at the National Security Council during the Trump and Biden administrations. \u201cThis is the Trump playbook applied in exactly the wrong domain. You\u2019re selling our national security for corporate profits.\u201dThe Financial Times earlier reported on the deal between the chipmakers and the Trump administration.Clearing the way for selling A.I. chips to China was a dramatic about face by the Trump administration, which banned their sales to China in April. The administration restricted exports of those chips because of concerns that the technology could be used to close the gap between the United States and China in the development of artificial intelligence.The administration\u2019s reversal on A.I. chip sales has been divisive because it has major implications for the race between the United States and China to develop artificial intelligence. Nvidia\u2019s chips are regarded as ideal for running some of the calculations that power A.I. and have better performance than those offered by its Chinese rival, Huawei.The Trump administration has said that it will continue to prevent China from buying Nvidia\u2019s most advanced chips. It has said that the H20 chip, which was made specifically for China and was approved for sale by the Biden administration, is less powerful than the chips the company sells to U.S. businesses and allies.\u201cWe don\u2019t sell them our best stuff, not our second-best stuff, not even our third best,\u201d said Howard Lutnick, the Commerce Secretary, during an appearance on CNBC last month. He said that the goal was to stay one step ahead of China, so it would keep buying U.S. chips.Mr. Huang persuaded Mr. Trump to approve A.I. chip sales by arguing that preventing them would only hurt U.S. tech companies. He has said a ban would allow Huawei to dominate sales of A.I. chips in China, the world\u2019s largest semiconductor market, and pump the money it makes into research and development to close the gap with Nvidia, AMD and others. Instead, he urged Mr. Trump to let Nvidia and AMD compete for those sales, so that they can use the money they make there to build their businesses.\u201cThe American tech stack should be the global standard, just as the American dollar is the standard by which every country builds on,\u201d Mr. Huang said during a podcast recorded in July with the Special Competitive Studies Project, a think tank.But many national security officials focused on China disagree. In July, two former national security officials in the Trump administration, Matt Pottinger and David Feith, and 18 other people with a mix of national security and economics expertise wrote a letter to the administration calling its policy change \u201ca strategic misstep that endangers the United States\u2019 economic and military edge in artificial intelligence.\u201dThe group said that the H20 would be \u201ca potent accelerator of China\u2019s frontier A.I. capabilities, not an outdated chip.\u201dNvidia\u2019s wins in Washington have brought it headaches in Beijing. Late last month, China\u2019s internet regulator, the Cyberspace Administration of China, summoned Mr. Huang to a meeting over the possibility that the H20 chip could have \u201cbackdoor security risks.\u201d Chinese state media has discouraged companies from buying the H20 over the issue.Last week, Nvidia published a blog saying that its A.I. chips don\u2019t have back doors. It also condemned a congressional effort to pass a law known as the Chip Security Act, which would require it to track its chips as a way to prevent the technology from being smuggled to China.\u201cThere is no such thing as a \u2018good\u2019 secret backdoor \u2014 only dangerous vulnerabilities that need to be eliminated,\u201d the company said.Tripp Mickle reports on Apple and Silicon Valley for The Times and is based in San Francisco. His focus on Apple includes product launches, manufacturing issues and political challenges. He also writes about trends across the tech industry, including layoffs, generative A.I. and robot taxis.See more on: U.S. Politics, Advanced Micro Devices Inc., Donald TrumpRead 843 CommentsShare full articleRelated ContentAdvertisementSKIP ADVERTISEMENT",
    "ai_headline": "U.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to China",
    "ai_simplified_title": "US Government Takes Cut of Nvidia and AMD AI Chip Sales to China",
    "ai_excerpt": "The Trump administration reached an agreement with Nvidia and AMD to receive 15% of their AI chip sales revenue in China. This unusual deal, driven by President Trump, aims to leverage export licenses and potentially generate over $2 billion for the U.S. government.",
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    <title>U.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to China - The New York Times</title>
    <meta data-rh="true" name="robots" content="noarchive, max-image-preview:large"><meta data-rh="true" name="description" content="In a highly unusual arrangement with President Trump, the companies are expected to kick 15 percent of what they make in China to the U.S. government."><meta data-rh="true" property="twitter:url" content="https://www.nytimes.com/2025/08/10/technology/us-government-nvidia-amd-chips-china.html"><meta data-rh="true" property="twitter:title" content="U.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to China"><meta data-rh="true" property="twitter:description" content="In a highly unusual arrangement w...
Parsed Content
Trump AdministrationliveUpdatesAug. 11, 2025, 9:19 a.m. ET20m agoTariff TrackerFloridaโ€™s โ€˜Alligator Alcatrazโ€™Separating FamiliesMajor Shift at E.P.A.Approval RatingsAdvertisementSKIP ADVERTISEMENTSupported bySKIP ADVERTISEMENTU.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to ChinaIn a highly unusual arrangement with President Trump, the companies are expected to kick 15 percent of what they make in China to the U.S. government.Share full articleJensen Huang, Nvidiaโ€™s chief executive, last month. Mr. Huang and President Trump struck the 15 percent arrangement at a White House meeting last week.Credit...Kenny Holston/The New York TimesBy Tripp MickleReporting from San FranciscoAug. 10, 2025้˜…่ฏป็ฎ€ไฝ“ไธญๆ–‡็‰ˆ้–ฑ่ฎ€็น้ซ”ไธญๆ–‡็‰ˆSign up for the On Tech newsletter. Get our best tech reporting from the week. Get it sent to your inbox.Nvidia and Advanced Micro Devices are expected to pay the United States 15 percent of the money they take in from selling artificial intelligence chips to...

Processing Status Details

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Completed Started: Feb 15, 2026 5:35 PM Completed: Feb 15, 2026 5:36 PM
AI Extraction Status
Pending

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