Bessent says unusual Nvidia, AMD revenue-sharing deal could be a ‘model’ for other industries

Treasury Secretary Scott Bessent has leaned into this new export revenue-sharing deal, saying it could serve as a blue for other industries

In a TV interview with Bloomberg Surveillance, Bessent praised Trump’s “unique solution.” “I think we could see it in other industries over time,” Bessent said. “Right now, this is unique, but now that we have the model and the beta test, why not expand it?” The historic agreement essentially allows Nvidia to export its H20 accelerator chips and AMD its MI308 cessors—designed specifically for compliance with U.S. export controls—to Chinese buyers who are hungry for advanced AI nology

Semiconductor chips, on the one hand, and rare earths materials, on the other, have been America’s and China’s respective leverage points as the countries seek a new trade understanding

Bessent claimed in the interview the revenue collected from the chip sales would go directly to paying down the national debt, and hinted at the possibility of channeling additional funds to taxpayers if the gram ves successful

Hotly debated deal The deal itself, however, has raised considerable debate

For years, Washington’s apach to export controls centered on outright bans and restriction of certain dual-use or national-security-sensitive goods

Trump’s administration had previously halted all sales of advanced chips to China, citing risks of aiding Chinese military and AI efforts

But the new model seeks to find a middle ground: It enables sales while capturing U.S. value and viding leverage in negotiations with Beijing

Bessent, a former hedge fund manager and George Soros tégé who became one of Trump’s closest Wall Street allies, has long argued for a strategic, results-oriented apach to American trade

His idea is U.S. companies can continue to compete globally without relinquishing leverage—or security

The arrangement itself is unusual

It is not a tax in the traditional legislative sense, but rather a condition attached to the export license—a point that has sparked controversy among legal experts. “It’s bizarre in many respects and pretty troubling since Congress didn’t have anything to say this,” Gary Hufbauer of the Peterson Institute for International Economics, told The Hill

He noted direct revenue-sharing agreements negotiated by the president and individual firms are without precedent in U.S. trade history

For this story, Fortune used generative AI to help with an initial draft

An editor verified the accuracy of the information before publishing

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