US officials have confirmed that semiconductor giants Nvidia and AMD have agreed to remit 15 per cent of their revenue from sales of advanced chips to China, including Nvidia’s H20 model used in artificial intelligence applications,

Nvidia's H20 chips pose security concerns for China, a social media account affiliated with China's state media said on Sunday, after Beijing raised concerns over backdoor access in those chips.

US chip giant Nvidia faces increasing mistrust in China over its H20 chips, after the company secured a licence from Washington to export the tailor-made processors by agreeing to pay 15 per cent of its revenues to the US government.