Nvidia and AMD have agreed to give the US government 15% of the revenue from their advanced computer chips such as the Nvidia H20 used for artificial intelligence (AI) applications.
US President Donald Trump halted sales of the H20 chip to China in April, but last month the US allowed Nvidia to resume sales and hopes to begin shipping it soon.
A US official also confirmed on Friday that the US Commerce Department had begun issuing licenses for the sale of H20 chips to China.
US Commerce Secretary Howard Lutnick said the plan to resume chip sales was part of US-China negotiations over rare earths and described the H20 as the fourth best chip.
When asked about Nvidia's willingness to pay 15% of its revenue to the US, a spokesman explained that it always complies with the rules set by the US government in its involvement in the global market.
The Financial Times (FT) also reported that the chipmaker agreed to the arrangement as a condition for obtaining export licenses for its semiconductors, including the MI308 chip from AMD.
The report states that the Trump administration has not yet made a decision on how to use the money.
