Nvidia and its smaller rival Advanced Micro Devices have both agreed to remit 15% of the revenue they generated from AI chip sales in China to the Trump administration, The Wall Street Journal reported Sunday, citing people familiar with the matter.

The global AI chip race narrative used to be about U.S. national security, but apparently now it's about tariffs: Nvidia and AMD have agreed to pay the U.S. government 15% of the revenue they make from sales of high-end AI chips to China in exchange for licenses to sell to those chips in the country,

Chipmaking giants Nvidia and AMD will reportedly have to pay the U.S. government a 15% cut on the revenue generated from AI chip sales to China.