Nvidia and AMD seal Trump deal to maintain China AI chip market

President Trump has publicised a compromise reached with AI chipmakers Nvidia and AMD, securing their continued business operations in China in exchange for a 15 per cent levy to the United States government on their China revenue. The agreement marks a significant shift in Washington’s position towards advanced semiconductor sales, as China remains an essential market for global technology suppliers.

Under this deal, Nvidia and AMD will be able to export their H20 and MI308 chips to China, both tailored specifically to adhere to previous US export restrictions. President Trump detailed the arrangement at a press conference, confirming the US will receive a share of all AI chip revenues earned in China. Despite earlier prohibitions, the US government has now permitted the shipment of H20 chips to the Chinese market, with applications for more advanced Blackwell-based chips potentially under consideration.

Nvidia chief executive Jensen Huang is reported to have advocated for loosening export restraints, contending that strict limits may accelerate Chinese technological independence and erode US leadership in artificial intelligence infrastructure. Shares in Nvidia and AMD responded positively to news of the agreement, reflecting market optimism regarding access to China’s lucrative AI sector.

The White House’s evolving policy extends to other multinational firms as well. Apple has pledged an additional $100 billion investment in the US, now totalling $600 billion over four years. In return, Apple is set to benefit from exemptions to stringent tariffs on imported semiconductors, a move that helps fortify its supply chain and profitability against escalating global trade headwinds.

US security critics remain cautious, warning that advanced GPU sales could strengthen Chinese ambitions in AI and defence. Yet, policymakers are increasingly opting for negotiation and revenue-sharing as a means of safeguarding American primacy while acknowledging the globalised nature of the technology industry. The precedent set by these agreements may signal a shift towards more transactional diplomacy in high-stakes technological competition.

Nvidia reaffirmed its commitment to following US regulatory guidance, emphasising the importance of American companies competing robustly in the Chinese market and striving to set the international standard for AI technology. The evolving balance between national security and economic opportunity remains in sharp focus, with manufacturers and governments searching for pragmatic solutions to a rapidly changing geopolitical landscape.