‘US is officially a middleman now’: Investor calls Nvidia’s 15% chip tax ‘Patriotism as a Service’

Nvidia and AMD can now resume AI chip exports to China—if they pay the U.S. government a 15% cut. Angel investor Gagan K Arora calls it what it looks like: “Patriotism-as-a-Service.”

“This isn’t national security—it’s a convenience fee,” Arora wrote in a scathing LinkedIn post after news broke that the U.S. will collect 15% of revenue from Nvidia and AMD’s China sales. “The chips were banned, the gates locked… and now the gates are reopened if you leave a 15% tip.”

Under the unprecedented deal, Nvidia and AMD must hand over a slice of their China earnings in exchange for export licenses—reversing bans previously framed as crucial to U.S. national security. The arrangement could net Washington an estimated $2 billion.

“The U.S. government is officially a middleman now,” Arora wrote. “If geopolitics were cricket, this is the moment the umpire is allowed to collect a commission before letting the batsman play again.”

The chips in question—Nvidia’s H20 and AMD’s MI308—had been restricted over fears they could supercharge China’s AI and military capabilities. Security experts, including former Trump officials, warned the chips could power surveillance platforms and autonomous weapons.

Critics slammed the move as hypocrisy. “You either have a national security problem or you don’t,” said Deborah Elms, head of trade policy at the Hinrich Foundation. “A 15% payment doesn’t fix that.”

Arora went further: “It’s been difficult to tell whether the U.S. President is a better businessman or a worse statesman.”

Legal scholars noted the fee may even violate the U.S. Constitution’s ban on export taxes. Meanwhile, on social media, investors labeled it a “shakedown” and a “tax on innovation.”

The backlash also triggered political unease. “Now the U.S. government is financially motivated to sell AI to China?” said Rep. Jake Auchincloss. “Shudder to think what a TikTok deal might look like.”