NVIDIA Refuses to Pay 15% China Revenue Share Without a Law

NVIDIA has said it has no intention of paying a 15% China revenue share unless the U.S. government formally codifies the measure into law. The company’s Chief Financial Officer Colette Kress emphasised this stance during its latest earnings call. The policy, described as a draft framework rather than enacted regulation, has not gone through any official legislative process.

NVIDIA warned that imposing such a scheme could trigger lawsuits, raise operational costs, and distort market competition, potentially harming its long-term competitiveness. Despite these regulatory uncertainties, NVIDIA reported record revenue of $46.7 billion for the quarter ending 27 July 2025, with net income of $26.4 billion, and has sustained over 50% annual growth for nine consecutive quarters even without significant sales of H20 AI chips in China.

Market talk has suggested NVIDIA is pivoting its product strategy, developing a new chip based on the Blackwell GPU architecture targeted at the Chinese market.