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

The US has sought to maintain its sovereignty in AI, citing national security concerns and financial motivations.

U.S. President Donald Trump on Monday suggested he might allow Nvidia to sell a scaled-down version of its next-generation advanced GPU chip in China, despite deep-seated fears in Washington that China could harness American artificial intelligence capabilities to supercharge its military.