Nvidia and AMD, two major US chipmakers, have agreed to share 15% of their revenue from selling advanced artificial intelligence (AI) chips to China to secure export licenses after a months-long pause. This deal raises constitutional questions and may set a concerning new precedent. Experts say that Congress did not have anything to say about this, as it is just the president’s own negotiating with the individual companies. Under the agreement, Nvidia will share 15% of its revenue from H20 chip sales to China, while AMD will share the same portion of its MI308 chip sales. Both chips, designed for the Chinese market with U.S. export controls in mind, faced new restrictions from the Trump administration in April, effectively blocking sales to China. The new revenue-sharing agreement comes after Nvidia CEO Jensen Huang met with President Trump at the White House last week. The agreement appears to remove a major impediment for both companies, as Nvidia incurred $4.5 billion in charges associated with the chip restrictions in the first quarter and expected an $8 billion sales hit in the second quarter. AMD forecast a $1.5 billion hit to revenue this year.
Trump’s controversial deal with Nvidia and AMD has sparked legal inquiries. SacDepSpa 929
