US Democrats probe Nvidia’s China chip sales deal with Trump admin, question $26 million in donations from company

US Democrats have launched an investigation into the Trump administration’s deal allowing Nvidia to sell advanced AI chips to China in exchange for 15% of its sales revenue.

US Democratic lawmakers have opened an inquiry into Nvidia's high-tech chip sales to China.

On Thursday, 12 November, Representative Richard Neal and Senator Ron Wyden asked the Commerce Department to preserve records related to an agreement that allowed Nvidia to export its H200 artificial intelligence (AI) chips to China in exchange for a share of the sales revenue for the US government.

Lawmakers have questioned whether the Trump administration used export controls, tariffs, and Nvidia's political contributions to exert influence over the company. Their inquiry also looks at Singapore-based Nvidia customer Megaspeed, which US authorities suspect of supplying more advanced chips to the Chinese government.

Democrats question Trump administration’s Nvidia chip deal

Quick answers to key questions

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QUESTIONS

The inquiry concerns an agreement allowing Nvidia to export H200 AI chips to China in exchange for a share of sales revenue for the US government. A report said Nvidia and AMD agreed to give the government 15% of revenue from China chip sales for export licences.

The lawmakers say the arrangement may have functioned as an unconstitutional export tax, with the government taking a share of Nvidia’s sales. They are examining how export controls, tariffs and the licence were used.

US authorities allegedly suspected Megaspeed of helping supply advanced Nvidia chips to China. Lawmakers are also asking why the Commerce Department approved the company’s purchases despite concerns raised in intelligence reports.

Yes. The lawmakers’ inquiry examines whether Nvidia’s political spending, including $26 million donated toward Trump projects, played a role in the administration’s actions. The article does not establish that the donations influenced the deal.

Neal, the top Democrat on the House Ways and Means Committee, and Wyden, the top Democrat on the Senate Finance Committee, have raised questions about the deal's legality in a letter to US Commerce Secretary Howard Lutnick.

The lawmakers said US President Donald Trump agreed to allow Nvidia's H200 chip sales to China, provided the Taiwan-made chips were first sent to the US. The administration then imposed a tariff before the Commerce Department issued the export licence.

The letter described the arrangement as a possible unconstitutional export tax system, alleging that the government effectively took a share of Nvidia’s sales to China.

The Associated Press first reported the revenue-sharing agreement in August 2025. Nvidia and AMD had agreed to give the US government 15% of their revenue from chip sales to China in exchange for export licences.

Megaspeed and alleged China links under scrutiny

The lawmakers also wondered why the Commerce Department had approved Megaspeed's chip purchases despite concerns about the company and its executive, Alice Huang, based on intelligence reports.

US authorities were allegedly concerned that Megaspeed was involved in facilitating the supply of premium Nvidia chips to China. The letter also questioned export approvals issued to other Asian companies, for which it was alleged that no physical office address existed.

The probe also looks at whether Nvidia's political spending played a role in the administration's actions. According to the letter, Nvidia donated $26 million towards Trump's projects, including his proposed White House ballroom.

Nvidia's former CEO faces separate congressional investigation

The new investigation is coming on the heels of more investigation after reports emerged of an alleged relationship between Nvidia founder Jensen Huang and Alice Huang, who has been accused of ties with Chinese intelligence.

In a separate move, a group of Republicans in Congress, led by the House Select Committee on the Chinese Communist Party, the House Foreign Affairs Committee and the House Intelligence Committee, has asked Huang to testify in a closed-door session.

(With inputs from agencies)

About the Author

Pragya is a Technology reporter with over four years of experience in digital media and content writing. She holds a Master’s degree in Journalism and has covered a wide range of stories spanning space, smartphones, gadgets, artificial intelligence, emerging technologies and the ways technology is transforming everyday life. She focuses on breaking down complex technology and science developments into clear, engaging, and reader-friendly stories, with a keen interest in emerging trends and their real-world impact. Before joining her current newsroom, Pragya worked with News9Live, where she covered the technology beat extensively, reporting on smartphones, consumer technology, AI, space and science, while also contributing to video and visual content. Her experience includes breaking news, explainers, SEO-driven stories, product coverage, interviews, unboxing videos and live event reporting. She has also covered major technology and AI events, giving her experience in both newsroom and on-ground reporting. Beyond journalism, Pragya is an avid gamer and a passionate reader of fiction. She enjoys exploring immersive worlds through games and books, with a particular interest in stories that offer new perspectives, ideas, and experiences.