• AMD CEO Lisa Su confirms the company will pay a 15% fee on revenue from MI308 AI chip exports to China, part of an unprecedented revenue-sharing arrangement with the U.S. government.
  • The deal, which also includes NVIDIA, marks a significant shift in trade policy, granting export licenses in exchange for a direct cut of sales, but faces mounting legal and constitutional challenges.
  • For AMD, the arrangement provides a path back into the lucrative Chinese market but comes at a steep cost, contributing to a $155 million operating loss in its data center unit last quarter.

In a landmark move blending trade policy with national security, Advanced Micro Devices (AMD) will pay 15% of its revenue from sales of advanced AI chips to China directly to the U.S. Treasury, CEO Lisa Su confirmed this week. The arrangement, part of a broader deal that also includes rival NVIDIA, represents a novel and controversial mechanism by the Trump administration to control the flow of critical technology while generating government revenue.

The export licenses for AMD's MI308 and NVIDIA's H20 chips were granted in August, just days after NVIDIA CEO Jensen Huang met with President Trump. The President later noted he had originally sought a 20% share but negotiated down to 15%, describing the chips involved as "essentially old." For AMD, which saw its MI308 sales to China completely eliminated by earlier export curbs, the deal offers a fraught lifeline. The company's data center unit booked a $155 million operating loss last quarter, heavily impacted by inventory charges and the China restrictions, as it pivots to next-generation products.

"What we have is a framework that allows us to serve customers in China under specific conditions," a person familiar with AMD's position said, acknowledging the financial impact of the fee. The company did not immediately respond to a request for further comment on the legal implications.

Those implications are substantial and are drawing fire from both sides of the political aisle. Critics argue the 15% levy functions as an export tax, which is prohibited under the U.S. Constitution. "There's no precedent for this, probably because export taxes are unconstitutional," said Derek Scissors, a senior fellow at the American Enterprise Institute. "They call it a fee, but 15% of sales revenue is about as standard a tax as it comes."

On Capitol Hill, concern is bipartisan. Rep. Raja Krishnamoorthi (D), ranking member of the House Select Committee on China, called the arrangement "a dangerous misuse of export controls." He added, "Our export control regime must be based on genuine security considerations, not creative taxation schemes disguised as national security policy." Republican Rep. John Moolenaar, who chairs the same committee, has questioned the legal basis and warned against setting a precedent that could incentivize licensing technology that ultimately enhances a strategic competitor's capabilities.

The Department of Commerce has established a legal framework to enforce the revenue-sharing, but its long-term durability is widely seen as uncertain. The deal is further complicated by new Senate legislation, led by Senator Jim Banks (R-Indiana), that directs NVIDIA and AMD to prioritize U.S. customers over Chinese buyers in their chip supply—adding another layer of compliance complexity for the chipmakers.

For now, the arrangement provides a temporary, if costly, solution. It reopens a critical market for both companies—China had represented over 12% of NVIDIA's sales before the latest curbs—but saddles them with a significant new cost of doing business. NVIDIA had previously warned that strict export controls could cost it $5.5 billion in lost revenue and push other nations toward China's AI ecosystem. The 15% fee mitigates the first risk while arguably exacerbating the second by making U.S. technology more expensive.

As the legal challenges mount, the industry is watching to see if this becomes a one-off exception or a new template for governing the export of sensitive technologies. The outcome will determine not just the profitability of AMD and NVIDIA's China ventures, but the shape of U.S. techno-statecraft for years to come.

Correction: An earlier version of this article stated the Senate legislation had been passed; it has been approved by the Senate but requires further action.