President Trump has officially confirmed that the US government has struck a revenue-sharing deal with GPU giants NVIDIA and AMD for sales in China. Under the agreement, both companies will hand over 15% of their China revenue to the US – a figure Trump says was negotiated down from his original 20% demand by NVIDIA CEO Jensen Huang. The deal currently applies to NVIDIA’s H20 AI chips, which Trump bluntly called “obsolete” compared to what’s available domestically.
Trump further hinted that future shipments of NVIDIA’s cutting-edge Blackwell AI GPUs to China would be limited to downgraded versions, ensuring they don’t provide a competitive edge to Chinese AI developers. 
He stressed that the US will not approve exports of top-tier AI chips to China, effectively forcing NVIDIA to supply lower-performance alternatives for that market.
Industry chatter suggests NVIDIA might be preparing a GDDR7-based AI chip for China, but any such product would likely fall short of the performance of full-scale Blackwell models. AMD, also part of the agreement, reportedly agreed to the same 15% revenue cut to maintain access to the Chinese market – although some analysts note its China AI revenue is far smaller than NVIDIA’s.
The H20, still in demand in China, is years behind Blackwell in performance and efficiency. As computing demands in China grow, analysts expect that market appetite for such chips will wane, especially if US export rules tighten further. For now, NVIDIA and AMD can keep selling – but only by giving Washington a slice of the pie and holding back their most powerful tech.