Nvidia and Advanced Micro Devices are expected to pay the United States 15 percent of the money they take in from selling artificial intelligence chips to China, as part of a highly unusual financial agreement with the Trump administration. The deal, which was described by three people familiar with the agreement who spoke anonymously because they didn’t have permission to discuss it publicly, comes a month after Nvidia received permission to sell a version of its artificial intelligence chips to China. While the Trump administration publicly said a month ago that it was giving the green light to Nvidia to sell an A.I. chip called H20 to China, it did not actually issue the licenses making those sales possible. On Wednesday, Jensen Huang, Nvidia’s chief executive, met with President Trump at the White House and agreed to give the federal government its 15 percent cut, essentially making the federal government a partner in Nvidia’s business in China, said the people familiar with the deal. The Commerce Department began granting licenses for A.I. chip sales two days later, these people said. Though Mr. Huang has led negotiations with the White House, Nvidia isn’t the only company that sells A.I. chips to China. AMD has an A.I. chip called the MI308 and in April the Trump administration also banned sales of it to the Chinese. There are few precedents for the Commerce Department agreeing to grant licenses for exports in exchange for a share of revenue. But the unorthodox payments are consistent with Mr. Trump’s increasingly interventionist role in international business deals involving American companies.

Full report : Nvidia, AMD to pay U.S. government 15% of China AI chip sales in an unusual deal.