August 13, 2025

Get ready for a hot twist in tech and trade! Nvidia and Advanced Micro Devices (AMD) are set to send 15% of the money they make from selling artificial intelligence (AI) chips to China straight to the US government. This spicy deal, cooked up during the Trump administration, is anything but ordinary. Just a month ago, Nvidia got the green light to sell a version of its AI chip, called the H20, to China. But here’s the catch: while the Trump team said yes publicly, the actual licenses needed to make those sales happen weren’t given until after a secret agreement was reached. This deal could pour over $2 billion into the US treasury! President Donald Trump spilled the beans himself in a press conference, saying he first asked for a larger 20% cut but let Nvidia's CEO, Jensen Huang, talk him down to 15%. Trump called the H20 an "obsolete" chip and joked, "So we negotiated a little deal. So he's selling a essentially old chip." Last week, Huang met the President at the White House and shook hands on this unusual partnership. Essentially, the US government is getting a piece of Nvidia’s China business pie! Right after, the Commerce Department began handing out the licenses needed to sell these AI chips to China. But wait, Nvidia isn't the only player here. AMD also has an AI chip called MI308, but in April, Trump's government banned its sales to China. The whole situation showcases Trump's bold and unusual moves in handling business between US tech giants and China. Normally, the Commerce Department doesn’t get a cut from export sales, making this a rare and eyebrow-raising financial handshake between business and politics.

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Tags: Nvidia, Amd, Ai chips, China sales, Trump administration, Trade deal,