August 11, 2025
Trump negotiates 15% government cut of Nvidia's AI chip sales to China
Tech companies forced to fund government through revenue sharing
šTradešConstitutional Lawš”Technology
Trump negotiated deal requiring Nvidia to pay U.S. government 15% of AI chip sales revenue to China
Trump initially demanded 20% before Nvidia CEO Jensen Huang negotiated down to 15%
Deal gives federal government direct profit share from private corporate sales through export licenses
Constitutional law experts say arrangement violates Article I, Section 9 export tax prohibition
No historical precedent exists for government revenue-sharing on private company exports
AMD also paying 15% of MI308 chip revenues to obtain export licenses
Deal bypasses Congress by allowing president to impose taxes without legislative approval
šTradešConstitutional Lawš”Technology
Test Your Knowledge
10
Q1
The revenue-sharing arrangement is described as "unprecedented" in U.S.-China trade relations.
Q2
What percentage of Nvidia's China AI chip revenue will go to the U.S. government?
Q3
According to Associated Press reporting (via Star Tribune, Aug. 11, 2025), did President Trump initially demand a 20% cut of Nvidiaās Chinaābound H20 chip sales revenue before CEO Jensen Huang negotiated it down to 15%?
Q4
As part of the agreement announced by the Trump administration on August 11, 2025, securing export licenses for Nvidiaās H20 and AMDās MI308 AI chips, what percentage of revenue from sales in China will Nvidia and AMD pay to the U.S. government? (Reuters, August 26 2025; CNBC, August 11 2025)
Q5
What capability does Nvidia's H20 chip have that concerns national security experts?
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Donald Trump
President of the United States
Jensen Huang
Nvidia CEO