Nvidia and Advanced Micro Devices have agreed to give the U.S. government a share of revenues from certain chips sold in China, the Financial Times reported, in an unprecedented arrangement with the White House.

In exchange for 15% of revenues from the chip sales, the two chipmakers will receive export licenses to sell Nvidia’s H20 and AMD’s MI308 chips in China, according to the FT.

The arrangement comes as President Donald Trump’s tariffs continue to reverberate through the global economy, underscoring the White House’s willingness to carve out exceptions as a bargaining tool.

Nvidia CEO Jensen Huang met with Trump last week, according to the FT.

In a statement, Nvidia told the Financial Times: “We follow rules the U.S. government sets for our participation in worldwide markets.”

Last week, Trump had said he would implement a 100% tariff on imports of semiconductors and chips, unless a company was “building in the United States.”

Read the complete Financial Times report here.

Chip giant Nvidia pushed back Sunday in response to allegations from Chinese state media that its H20 artificial intelligence chips are a national security risk for China.

Earlier in the day, Reuters reported Yuyuan Tantian, an account affiliated with Chinese state broadcaster CCTV, said in an article published on WeChat that the Nvidia H20 chips are not technologically advanced or environmentally friendly.

“When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,” the Yuyuan Tantian article reportedly said, adding that the article said chips could achieve functions including “remote shutdown” through a hardware “backdoor.”

In response, a Nvidia spokesperson told CNBC that “cybersecurity is critically important to us. NVIDIA does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.”

Nvidia on Tuesday similarly rejected Chinese accusations that its AI chips include a hardware function that could remotely deactivate the chips, also known as a “kill switch.”

Tensions between the U.S. and China on semiconductor export controls have escalated in recent weeks, even after Nvidia resumed sales of its H20 chip to China. Chinese state media has framed the H20 chip as inferior and dangerous compared to Nvidia’s other chips, while the company has defended its chips.

The company’s resumption of its H20 shipments reversed a previous ban on H20 sales that was placed in April by the Trump administration. Nvidia’s H20 chips — a less-advanced semiconductor compared to its flagship H100 and B100 chips, for example — were developed by Nvidia for the Chinese market after initial export restrictions on advanced AI chips in late 2023.

U.S. export controls on some Nvidia chips are rooted in national security concerns that Beijing could use the more advanced chips to gain an advantage broadly in AI, as well as in its military applications.

Chinese officials, meanwhile, are pushing for the U.S. to ease export controls on high-bandwidth memory chips as part of a trade deal before a possible summit between U.S. President Donald Trump and Chinese President Xi Jinping, the Financial Times reported on Sunday, citing people familiar with the matter.

Nvidia CEO Jensen Huang has supported Trump’s policies while also lobbying for export licenses for the H20 AI chip. Huang has said he wants Nvidia to ship more advanced chips to China, underscoring his outspoken stance that Nvidia’s chips becoming the global standard for AI computing is ultimately better for the U.S. to retain market dominance and influence over global AI development.

China is among Nvidia’s largest markets. Nvidia took a $4.5 billion writedown on its unsold H20 inventory in May and has warned that its topline guidance for the July quarter would have been higher by $8 billion without the chip export restrictions.

Nvidia shares were up 1% to close at $182.70 on Friday and are up 36% this year.

Apple shares rose 13% this week, its largest weekly gain in more than five years, after CEO Tim Cook appeared with President Donald Trump in the White House on Wednesday.

Shares of the iPhone maker rose 4% to close at $229.35 per share on Friday for the company’s largest weekly gain since July 2020. The week’s move added over $400 billion to Apple’s market cap, which now sits at $3.4 trillion.

Apple is the third-most valuable company, behind Nvidia and Microsoft and ahead of Alphabet and Amazon.

At the White House on Wednesday, Cook appeared with Trump to announce Apple’s plans to spend $100 billion on American companies and American parts over the next four years.

Apple’s plans to buy more American chips pleased Trump, who said during the public meeting that because the company was building in the U.S., it would be exempt from future tariffs that could double the price of imported chips.

Investors had worried that some of Trump’s tariffs could substantially hurt Apple’s profitability. Apple warned in July that it expected over $1 billion in tariff costs in the current quarter, assuming no changes.

“Apple and Tim Cook delivered a masterclass in managing uncertainty after months and months of overhang relative to the potential challenges the company could face from tariffs,” JP Morgan analyst Samik Chatterjee wrote on Wednesday. He has an overweight rating on Apple’s stock.

Cook’s successful White House meeting also comes two weeks after Apple reported June quarter earnings in which overall revenue jumped 10% and iPhone sales grew by 13%.

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