Nvidia and AMD are set to resume sales of advanced AI chips to China, but under strict conditions.
Both companies will share 15% of their revenue from these sales with the U.S. government.
In exchange, they will receive licenses (which the government already began issuing) to sell in the Chinese market, according to the Financial Times.
For Nvidia, the deal applies to its H20 AI chips, and AMD will follow the same arrangement for its MI308 chips.
Both models are designed for high-performance AI computing.
Changed Focus
Recent years saw a focus on national security. U.S. officials feared that advanced chips could support China’s military and surveillance programs.
Now, the focus appears to center on oversight and tariffs. Through controlled sales, the U.S. can monitor exports while benefiting financially.
Regulations
In April, the Trump administration restricted the sale of certain AI inference chips to China. That ban was lifted months later after Nvidia pledged to invest up to $500 billion in U.S. data centers.
By July, Nvidia confirmed it would restart H20 chip sales to China. The company had designed the model to comply with earlier restrictions under the Biden administration.
Also read: Nvidia Releases New Cosmos Models to Fuel Robotics
Nvidia’s Position
Nvidia has stated its commitment to following U.S. regulations.
“We follow rules the U.S. government sets for our participation in worldwide markets,” a company spokesperson said.
“While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”
Trade Talks
U.S. Commerce Secretary Howard Lutnick indicated that the decision is linked to trade negotiations.
These discussions involve rare-earth elements, critical materials for products such as electric vehicle batteries and renewable energy technology.
Access to these resources remains a strategic concern as China controls much of the global supply.
Growing Opposition
The policy change has drawn criticism from national security experts and former officials.
They argue that any sale of advanced AI chips to China could weaken U.S. strategic advantages.
Last month, several of these experts urged Secretary Lutnick to reconsider. Their letter warned that once shipped, the chips’ ultimate use would be difficult to control.
