Trump said Monday that he has cut a deal with chipmaker Nvidia, allowing it to sell certain artificial intelligence chips to China in exchange for a cut of the revenue, which would go to the U.S. government. Trump said he also negotiated a similar deal with chipmaker Advanced Micro Devices (AMD).

The arrangement crafted by the Trump administration is “unusual,” analysts told CNBC, but underscores the president's transactional nature.

The Trump administration’s potential deal with Nvidia over its chip exports is rankling conservative China hawks, who see it as a bad move for American national security and want a more muscular strategy of economic statecraft against Beijing.