Nvidia and Advanced Micro Devices agreed to pay 15 per cent of their revenues from Chinese AI chip sales to the US government in a deal to secure export licenses, an unusual arrangement that may unnerve both US companies and Beijing.

Nvidia and Advanced Micro Devices are expected to pay the United States 15% 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.

Nvidia’s H20 chips, designed specifically for China, have been labeled unsafe and environmentally unfriendly by the country’s state media.