President Donald Trump has agreed in principle to let Nvidia Corp. and Advanced Micro Devices Inc. resume sales of scaled-down versions of their next-generation artificial-intelligence processors to China, people familiar with the matter said. The compromise comes after months of White House deliberations over whether the chips could bolster China’s military capabilities. Under the arrangement, the two chip designers would remit 15% of revenue from the Chinese sales to the U.S. Treasury, creating an unprecedented royalty-style levy on technology exports. Treasury Secretary Scott Bessent told reporters the model could serve as a template for other industries once the pilot is assessed. Nvidia Chief Executive Officer Jensen Huang personally lobbied for the deal, at one stage offering to invest as much as $500 billion in U.S. manufacturing and research to win approval, according to people briefed on the talks. The company’s Blackwell-architecture H20 chip, developed specifically for the Chinese market after earlier export curbs, had been blocked by a series of escalating U.S. restrictions and tariffs. China contributed 13% of Nvidia’s revenue in the fiscal year that ended in January, down from 21% two years earlier after Washington tightened export rules. While Beijing has encouraged local firms to adopt domestic alternatives from suppliers such as Huawei, cloud-service giant Tencent said it still has sufficient inventories of Nvidia GPUs to train large AI models. Analysts say the agreement preserves a lucrative, if diminished, market for U.S. chipmakers while capping the performance of hardware available to Chinese customers. Nvidia shares were little changed in early New York trading.