❓WHAT HAPPENED: Nvidia and AMD agreed to pay 15 percent of their China chip sales revenues to the U.S. government in exchange for export licenses.
👤WHO WAS INVOLVED: Nvidia, AMD, the Trump administration, and Nvidia CEO Jensen Huang.
📍WHEN & WHERE: The export licenses were granted last week, following negotiations earlier this year.
🎯IMPACT: This unprecedented revenue-sharing arrangement changes the nature of U.S. export policy but may have implications for national security.
Nvidia and AMD, major chipmakers, have reportedly agreed to allocate 15 percent of their China chip sale revenues to the U.S. government to secure export licenses from the Trump administration. The White House finalized an agreement with Nvidia and AMD, mandating a 15 percent revenue share from their chip sales in China to obtain export licenses for the Chinese market, issued last week.
Sources, including a U.S. official, indicate Nvidia will contribute 15 percent of its H20 chip sales revenue in China, and AMD will do the same for its MI308 chip sales. The administration’s use of these funds remains undecided.
This deal marks a first, as no U.S. company has previously agreed to share revenues for export licenses. It reflects President Trump’s approach of encouraging companies to invest domestically to boost U.S. jobs and revenue in exchange for tariff exemptions.
While in Beijing, Nvidia CEO Jensen Huang lauded Chinese artificial intelligence (AI) advancements at the International Supply Chain Expo, specifically praising DeepSeek’s AI research, saying, “It is incredibly well written. It is absolutely A-plus quality science and A-plus quality engineering.”
DeepSeek’s creators are believed to have achieved the AI’s current performance by acquiring more American chips than they were supposed to and misrepresenting its technical specifications.
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