• U.S. Treasury Secretary Scott Bessent signals potential for "substantially more than $300 billion" from a groundbreaking revenue-sharing arrangement with Nvidia and AMD.
  • The deal mandates 15% revenue contributions from certain China-bound sales as a condition for export licenses—a novel approach bypassing traditional legislative channels.
  • Legal experts warn the arrangement sets troubling precedents, while markets react positively to preserved access to Chinese markets.

A New Frontier in Tech Trade Policy

U.S. Treasury Secretary Scott Bessent has revealed the potential for the federal government to collect "substantially more than $300 billion" through an unconventional revenue-sharing agreement with semiconductor giants Nvidia and AMD. The arrangement, tied to export licenses for China-bound sales, requires each company to contribute 15% of revenue from specific product categories—a move one trade attorney described as "policy innovation with constitutional questions."

Sources familiar with the negotiations confirm the mechanism operates outside traditional tax structures, functioning instead as a mandatory condition for maintaining critical export permissions. While Nvidia and AMD have not publicly commented on the terms, both companies' shares showed modest gains following Bessent's remarks, suggesting investor relief over continued access to the Chinese market.

Legal and Market Crosscurrents

The deal emerges amid heightened U.S.-China tech tensions, where the Commerce Department has increasingly used export controls as economic leverage. "This isn't just about semiconductors—it's rewriting the playbook for public-private partnerships," said a former White House trade official who requested anonymity due to ongoing consulting work with affected firms.

Market analysts note the arrangement could temporarily stabilize revenue streams for both companies, with Nvidia particularly positioned to absorb the cost given its 265% year-over-year data center revenue growth last quarter. However, regulatory filings reveal neither corporation has disclosed the financial impact in recent SEC submissions, raising questions about disclosure timing.

Uncharted Constitutional Waters

Legal scholars across ideological spectrums have expressed concern about the executive branch's unilateral imposition of revenue requirements. "When you substitute Treasury Department negotiations for congressional appropriations, you're testing fundamental separation of powers," warned Georgetown Law's Catherine Redlich during a Brookings Institution panel Thursday.

The administration appears undeterred, with Bessent simultaneously advancing digital asset policies he calls "the Golden Age of Crypto." This dual focus on tech sector intervention and financial innovation underscores what allies describe as an "entrepreneurial approach to economic statecraft"—and critics label as "ad hoc governance."

The Treasury Department did not respond to requests for clarification on whether the revenue threshold includes projected figures beyond the current fiscal year.