The agreement between the chipmakers and the U.S. government will allow Nvidia and AMD to obtain export licenses to resume sales to China.

Outside of the U.S., China remains one of the most important markets fueling demand for high-performance chipsets, particularly graphics processing units (GPUs). Nvidia CEO Jensen Huang has estimated that the AI opportunity in China alone could be worth as much as $50 billion.

The U.S. government’s recent agreements with tech giants NVIDIA and AMD have sparked constitutional concerns, according to Constellation Research founder R “Ray” Wang. Speaking on Fox Business’s “Varney & Co.,” Wang outlined potential issues with these government-tech partnerships while highlighting parallel tensions between tech leaders.

Treasury Secretary Scott Bessent hinted Tuesday the US government may be considering taking a stake in struggling chipmaker Intel, coming after multiple media outlets have reported that discussions were in place.

AMD and Intel are winning share at the margins but can't break Nvidia's CUDA ecosystem and supply chain advantages by 2028. Even with a potential government stake in Intel, the AI infrastructure buildout measured in trillions supports Nvidia's pricing power through the decade.

Revenue-sharing deal between Nvidia, AMD and U.S. government covers AI chip sales to China, a key market worth billions for both companies.

The US has sought to maintain its sovereignty in AI, citing national security concerns and financial motivations.

Chipmakers Nvidia and AMD have agreed to pay the U.S. government 15 percent of artificial intelligence (AI) chip sales to China to secure export licenses, a U.S. official confirmed to The Hill.