Nvidia last week struck a deal with the U.S. government to resume selling products in China, in exchange for giving it a 15% cut of the sales.

Nvidia is said to be developing a new AI chip, codenamed B30A, for the Chinese market. Positioned between the flagship B300 and the restricted H20, the chip is designed to comply with US export rules while offering more power than existing China-bound GPUs.

Nvidia CEO Jensen Huang said the Trump administration is letting it sell its advanced H20 computer chips to China — a reversal in policy.

Samsung reportedly offered NVIDIA its 12-layer HBM3E memory at 20-30% cheaper than SK hynix for use on its made-for-China H20 AI GPU.

Sam Altman has cautioned against the use of export controls and has warned that China can probably build inference capacity faster than the U.S..

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

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The Chinese impact on Nvidia is significant. KeyBanc raised its Q2 revenue estimate to $47.1 billion from $45.1 billion, above Wall Street’s consensus of $45.7 billion. It raised earnings per share to $1.05 from $0.99, slightly above consensus of $1.00.