Nvidia and AMD will pay 15% of their Chinese chip sales to the US government to obtain export licenses. This follows US restrictions on selling powerful AI chips to China due to national security concerns. The deal, deemed "unprecedented," involves Nvidia's H20 and AMD's MI308 chips. While Nvidia asserts adherence to US regulations and hopes for continued competition in China, critics question whether the financial arrangement mitigates national security risks. China has previously criticized the US's export control measures.

Prepared by Christopher Adams and reviewed by editorial team.