US demands cut of Nvidia sales in order to ship AI chips to China
President Trump’s administration has struck an unusual deal with Nvidia and AMD: they’ll pay a 15% cut of AI chip sales to China back to the US. Licenses cover stripped-down GPUs like Nvidia’s H20 and AMD’s MI308, potentially generating $2 billion a year for the Treasury. The move follows Trump’s hard line on semiconductors—from threats of 100% tariffs to public demands on tech CEOs—and underscores his growing role in major business deals under the guise of national security.