Nvidia and AMD have reportedly reached an unprecedented agreement with the United States government to pay 15 percent of their revenues from certain chip sales in China in exchange for export licenses. The arrangement covers Nvidia’s H20 chips and AMD’s MI308 chips, both designed for the Chinese market to comply with U.S. export control rules. The licenses were granted last week, restoring access to a key market for the companies after months of regulatory restrictions.

On the very same day this licensing breakthrough made headlines, Chinese regulators and state media intensified their focus on potential security risks in the H20 chip, raising allegations of a “hardware backdoor” that could enable remote shutdown or control. Nvidia has firmly denied the claims.

The timing has left many wondering what one has to do with the other. The answer lies in the fact that, while the U.S. licenses open the door from one side, Chinese security concerns could still close it from the other.

Background and Context

The H20 chip’s compliance story began under the Biden administration, which had progressively tightened AI chip export controls to China, first in October 2022, then again in October 2023, and with a final set of rules announced on January 13, 2025. These Biden-era rules introduced a tiered licensing system for exports to China and Russia. They were scheduled to take effect on May 15, 2025, after the inauguration of Donald Trump on January 20, 2025.

In April 2025, the Trump administration moved to block the sale of Nvidia’s H20 and AMD’s MI308 chips to China, despite the products having been designed to comply with the earlier Biden-era thresholds.

By July 2025, the Trump administration reversed the April ban and began issuing export licenses. As a condition, the companies were required to share 15 percent of their revenue from Chinese sales of these chips with the U.S. government.

Reports suggest the revenue-sharing arrangement aligns with the Trump administration’s broader trade policy approach, encouraging companies and foreign governments to make financial contributions or investments to gain or restore market access in sensitive sectors.

How the Two Developments Intersect

The revenue-sharing deal clears a major U.S. regulatory hurdle. In April 2025, under the Trump administration, the H20 chip was added to export control restrictions, blocking sales to China. In July, the administration reversed that ban and began issuing licenses — but with a first-of-its-kind requirement that companies pay a percentage of sales revenue back to the U.S. government.

At the same time, China’s Cyberspace Administration and state media have been ramping up pressure on Nvidia over the H20’s alleged security risks. The government has summoned the company for discussions, and public commentary has demanded proof that the chips cannot be remotely accessed or disabled. These concerns have nothing to do with U.S. export rules, yet they could influence whether the newly licensed products actually gain traction in the Chinese market.

Implications for Governance, Risk, and Compliance

Two regulatory fronts
Nvidia and AMD are dealing with two very different regulatory challenges. The revenue-sharing license resolves U.S. export restrictions, but Chinese security reviews could impose their own limits or slow market adoption.

Market access is multidimensional
Securing an export license is only part of the process. In the current geopolitical climate, companies must gain approval from multiple governments, each with its own requirements and political priorities.

Precedent setting for U.S. policy
The revenue-sharing arrangement is the first time a U.S. company has agreed to pay a portion of its revenues for an export license. If similar agreements are used in other sectors, they could reshape how strategic industries approach foreign market access.

Reputational stakes in parallel
Security allegations, whether proven or not, can affect customer trust and willingness to buy. Even with the license in place, hesitation in China could impact both sales and global brand perception.

The Bigger Picture

The coincidence of these two stories, the revenue-sharing license deal and the security backdoor allegations, is more than a case of overlapping news cycles. It illustrates the reality that in strategic technology markets, access depends on satisfying multiple layers of political, regulatory, and trust-based requirements.

For governance, risk, and compliance leaders, the lesson is clear. Passing one regulatory checkpoint does not guarantee market entry. True resilience in global operations now requires managing both the formal compliance rules and the perceptions that influence demand.

The post Nvidia and AMD Agree to Revenue Share with the US as Security Scrutiny Intensifies appeared first on Centraleyes.

*** This is a Security Bloggers Network syndicated blog from Centraleyes authored by Rebecca Kappel. Read the original post at: https://www.centraleyes.com/nvidia-and-amd-agree-to-revenue-share/