Europe Asia News

The US had previously banned the sale of powerful chips used in fields such as artificial intelligence (AI) to China, typically under export controls related to national security concerns.

Security experts, including those who served in President Donald Trump’s first term, recently wrote a letter to his administration expressing “deep concerns” that Nvidia’s H20 chip is a “powerful accelerator” of China’s AI capabilities.

On Monday, Trump dismissed the security concerns, saying the chip in question was “obsolete.”

Under the agreement, Nvidia will pay the US government 15% of the revenue from H20 chip sales in China.

AMD will also pay the Trump administration 15% of the revenue from MI308 chip sales in China. This was first reported by the Financial Times.

Nvidia told the BBC: “We comply with the rules set by the US government for our participation in global markets.”

The company added: “We have not shipped H20 to China for months, but we hope export control rules will allow America to compete with China and in global markets.”

AMD did not immediately respond to a request for comment.

The deal has caused surprise and concern in the US. Critics said it increases security risks and raises questions about the Trump administration’s approach to relations with private companies.