U.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to China

Published: Monday, August 11, 2025 at 1:25 am

U.S. Government to Profit from AI Chip Sales to China

The U.S. government is poised to receive a portion of revenue from sales of artificial intelligence (AI) chips to China by both Nvidia and AMD. This unprecedented move, orchestrated by the Trump administration, marks a significant shift in the government's approach to international business deals involving American technology companies.

Nvidia, led by Mr. Huang, has been negotiating with the White House regarding these sales. The agreement, finalized last week, is expected to generate over $2 billion for the U.S. government. Nvidia anticipates selling over $15 billion worth of its H20 chip to China by the end of the year. AMD, which also sells AI chips to China, specifically its MI308, is expected to contribute $800 million in sales.

The Commerce Department has granted licenses for these exports in exchange for a share of the revenue. This arrangement is consistent with the administration's interventionist stance in international business. This is not the first time the government has taken a stake in a business. In June, the administration approved investment by Nippon Steel in U.S. Steel, a deal that included a "golden share" for the government.

Furthermore, the administration is employing tariffs to encourage domestic manufacturing. Last week, Mr. Trump announced that tech companies would face a 100 percent tariff on semiconductors manufactured abroad unless they invest in the United States.

Ken Brown, a spokesman for Nvidia, stated that the company adheres to U.S. government regulations for international sales. He expressed hope that export control rules will allow American companies to remain competitive in China and globally.

BNN's Perspective:

This strategy represents a bold, if somewhat unconventional, approach to balancing national security concerns with economic interests. While the government's intervention in private sector revenue streams raises questions about market dynamics, the move to secure a financial stake in these sales could provide a significant revenue stream for the U.S. and potentially incentivize companies to comply with export controls. The long-term impact on the competitiveness of American tech companies and the relationship with China remains to be seen.

Keywords: Nvidia, AMD, AI chips, China, U.S. government, revenue, export controls, Trump administration, tariffs, semiconductors, H20, MI308, Commerce Department, Nippon Steel, U.S. Steel

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