NVIDIA, AMD To Pay 15% Of Chinese H20 And MI308 AI Chip Sales To US Gov’t

AMD and NVIDIA have reportedly agreed to pay the United States government 15% of all revenues derived from AI chip sales to China, thereby giving the green light for the former to begin shipping Instinct MI308 accelerators and the latter its Hopper H20 silicon to the Chinese market.

Both firms have already begun receiving export licenses to ship previously banned silicon to China, according to a Financial Times report. Citing people who are supposedly familiar with the arrangement, the Trump administration has not yet decided on what exactly it will do with the money, which is likely to be a significant sum tallying billions of dollars annually.

It's estimated that NVIDIA would have sold in the neighborhood of 1.5 million H20 chips to China before an export ban was issued. That figure alone would have generated around $23 billion in revenue, resulting in a $3.45 billion payment ...