Increased Involvement of U.S. Government in Export Activities
In a groundbreaking move, a revenue-sharing agreement between Nvidia, AMD, and the U.S. government took effect in August 2025. This unprecedented deal requires the chipmakers to pay a 15% share of their revenue from AI chip sales to China in exchange for export licenses, allowing the sale of specific AI chips (Nvidia’s H20 and AMD’s MI308) to China despite previous restrictions [1][3][4].
The agreement, which is unique to chipmakers Nvidia and AMD, could serve as a potential model for other industries, according to U.S. Treasury Secretary Scott Bessent, who described it as a "beta test" [2]. The revenue collected is intended partly to reduce the national debt, and officials have hinted at possibly returning funds to taxpayers if the model succeeds [2].
The historical context of this agreement dates back to early 2025, when U.S. export controls under the Trump administration banned sales of cutting-edge AI chips like Nvidia’s H20 to China. However, the government later reversed course and issued export licenses, but tied these licenses with a novel revenue-sharing requirement—something not done before in U.S. export policy [1][3]. Nvidia’s CEO, Jensen Huang, played a role in the reversal of the restrictions on semiconductor sales to China [1].
The potential impacts of expanding this model to other industries are significant. A new precedent in export policy could redefine how strategic industries gain access to foreign markets controlled for national security or economic leverage. The model creates a direct revenue source linked to exports that could be substantial for industries with large international sales. However, industries would face increased regulatory burden and risk, managing dual approvals (U.S. export license with revenue share and foreign country security clearance) [2].
Critics argue that the arrangement sets a dangerous precedent, merging trade policy with direct federal financial involvement in private sector revenues [5]. Chinese market acceptance is not guaranteed, given ongoing security concerns and geopolitical tensions [3]. This could impact global brand perception and complicate multinational companies’ international strategies.
In summary, the Nvidia-AMD revenue-sharing export deal marks a historic shift in export control policy and is explicitly positioned as a potential blueprint for other industries. Its full impacts will depend on how widely this model is adopted, how regulatory and geopolitical dynamics evolve, and the response from international markets [1][2][3][5].
- The unique revenue-sharing agreement between Nvidia and AMD in the chipmaking industry could act as a prototype for other businesses, as suggested by Treasury Secretary Scott Bessent.
- If adopted by other industries, the revenue-sharing model could lead to a significant direct revenue source linked to exports, though it would also increase regulatory burden and risk.
- Critics have expressed concerns that the revenue-sharing arrangement between Nvidia and AMD, especially if extended to other industries, could set a dangerous precedent by merging trade policy with direct federal financial involvement in private sector revenues.
