Nvidia and AMD will pay the US government 15% of revenue from AI chip sales in China to secure export licenses. This agreement, negotiated with President Trump, reverses an earlier ban on Nvidia's H20 and AMD's MI308 chips. Trump stated the H20 is an older chip but still valuable to China.
The deal requires Nvidia and AMD to share revenue for AI chips sold in China. The Trump administration had previously restricted H20 sales due to security concerns but later reversed this decision. The agreement aims to allow American companies to compete in the Chinese market while ensuring the US benefits financially.
Experts have raised concerns about the legality of this unprecedented arrangement. Nvidia stated it adheres to US government regulations for global markets. The funds' intended use by the government remains unclear.
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