Nvidia Warns US Plan for 15% China Chip Sales Commission Faces Legal Risks

By Mintesinot Nigussie
Published on 08/28/25

Nvidia Corp. said a Trump administration proposal to charge a 15 percent commission on its artificial intelligence chip sales to China remains at an early stage and could expose the company to legal challenges, Bloomberg reported.

The US government has not outlined how the plan would be implemented, and discussions are ongoing, Chief Financial Officer Colette Kress said. If no regulation is formalised, Nvidia expects to resume sales to China without paying the commission after securing the required licences earlier this month.

The proposal, which would also apply to Advanced Micro Devices Inc., is intended to allow both companies to sell AI chips in China following a US ban in April. “If nothing shows up, I’ve got licences. I don’t have to do this 15 percent until I see something that is a true regulatory document,” Kress said in an interview.

Nvidia cautioned that the measure could increase costs, create legal exposure, and give rivals an advantage. “Any request for a percentage of the revenue by the USG may subject us to litigation, increase our costs, and harm our competitive position and benefit competitors that are not subject to such arrangements,” the company said in a filing.

The White House and the Commerce Department, which oversees export controls, did not respond to requests for comment.

Nvidia’s products have become a focal point in the US–China technology rivalry, with earlier restrictions effectively cutting the company off from the Chinese AI market. While recent licences offer a path back, Nvidia said it is not yet including potential revenue from China in its forecasts.