US Market
Nvidia and AMD have agreed to share 15 per cent of their revenues from chip sales to China with the United States government, as part of a deal to secure export licences for the semiconductors.
The Trump administration halted the sale of advanced computer chips to China in April over national security concerns, but Nvidia and AMD revealed in July that Washington would allow them to resume sales of the H20 and MI308 chips, which are used in artificial intelligence development.
President Trump confirmed the terms of the unusual arrangement in a press conference on Monday, while noting that he originally wanted 20 per cent of the sales revenue when Nvidia asked to sell the “obsolete” H20 chip to China. The president credited Nvidia CEO Jensen Huang for negotiating him down to 15 per cent.
“So we negotiated a little deal. So he’s selling a essentially old chip,” Trump said.
Nvidia did not comment about the specific details of the agreement or its quid pro quo nature, but said they would adhere to the export rules laid out by the administration.