Nvidia, AMD China chip sales revenue 15% to pay to US government
Nvidia and AMD agreed to share 15 percent of their revenue from the sale of chip with China with the US government, an US government official on Sunday in an unusual move to disintegrate American companies.
The administration of US President Donald Trump stopped the sale of advanced computer chips in China over national security concerns in April, but NVidia and AMD revealed in July that Washington would allow them to resume sales of H20 and MI308 chips, which are used in artificial intelligence growth.
Officers, who insisted on oblivion to discuss the policy not yet declared formally, confirmed the Associated Press’s revenue sharing terms of the deal, and stated that the broad stroke of the initial report by the Financial Times was accurate.
Nvidia and AMD agreed to financial arrangements as a condition to obtain export licenses to China allegedly resume sales. AMD said on Monday that the US government had approved its license applications to export its chips to China.
NVIDIA did not comment about specific details of the agreement or its Kwid Pro Quo Nature, but said it would follow the export rules set by the administration.
Nvidia wrote in a statement, “We follow the rules set by the US government for our participation in markets around the world. While we have not sent H20 to China for months, we hope that the export control rules will allow the US to compete in China and the world.” “America cannot repeat 5G and lose telecommunications leadership. America’s AI Tech Stack can be the world’s standard if we run.”
The top Democrat on a house panel focusing on competition with China expressed concern over the report reported, “a dangerous misuse of export control that weakens our national security.”
Rape Raja Krishnamurthy, a ranking member of the House Selection Committee on China, said that he would seek answers about the legal basis for this system and demand full transparency from the administration.
“Our export control regime should be based on real safety ideas, not on the creative taxation schemes, which is a national security policy,” he said. “Chip export control chips are not negotiating, and they are not either casino chips. We should not gamble with our national security to increase revenue.”
Questions about national security
In July, NVIDIA argued that the company would spend an additional cost of $ 5.5 billion from tight export control around its chip sales. It has been argued that such boundaries obstruct American competition in the region, one of the world’s largest markets for technology, and also warned that American export control may extend other countries towards China’s AI technology.
The deal to pay the US government from sales in China is unusual for a president, and marks Trump’s latest intervention in corporate decision making.
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To invest in the United States to increase domestic jobs and manufacturing to Trump Harangue Company officials. Last week, he immediately resigned the new Intel CEO Lip-Bo Tan, called him “highly disputed” due to his relationship with Chinese firms.
“It’s wild,” Jyoff Gurtz, a senior fellow of the center for the New American Security, said, an independent think-tank in Washington, DC
“Either selling H20 chips to China is a national security risk, in which we should not do to start it, or it is not a national security risk, in which case, why are we putting this additional punishment on sale?”
Commerce Secretary Howard Lutnik told CNBC in July that renewed sales of NVidia’s chips in China were associated with a trade agreement between the two countries on the rare earth magnet.
The ban on the sale of advanced chips in China has been central for the AI race between the world’s two largest economic powers, but such controls are also controversial. Supporters argue that these restrictions are necessary to slow down China to allow American companies to hold their leadership.
Meanwhile, opponents say there are flaws in export control – and can still inspire innovation. The emergence of China’s Dipsek AI Chatbot in January specifically expressed concern on how China can use advanced chips to help develop its AI capabilities.
