U.S. Tech Giants Nvidia and AMD Cede 15% China Revenue to Washington

In a bold move to bypass export restrictions, Nvidia and AMD have struck a deal that could reshape the global tech landscape. Imagine giving away a slice of your profits just to access a massive market – that’s exactly what these chip giants are doing. Why? And how will this impact the future of semiconductor trade?

What’s Happening?

Tech giants Nvidia and AMD have agreed to hand over 15% of their revenues from chip sales in China to the U.S. government. This unprecedented arrangement is part of a deal to secure export licenses for their semiconductors, following strict U.S. trade restrictions.

Where Is It Happening?

The agreement impacts global tech markets, particularly China, where both companies have significant business operations. The deal is facilitated by the U.S. government, aiming to balance trade and national security concerns.

When Did It Take Place?

The agreement was reported on Sunday, August 10, 2024, following negotiations between the U.S. government and the two semiconductor companies.

How Is It Unfolding?

• Nvidia and AMD will share 15% of their China sales revenue with the U.S. government.
• The revenue-sharing deal is part of obtaining export licenses for restricted semiconductor sales to China.
• This arrangement comes after U.S. export controls aimed at curbing advanced chip technology from reaching China.
• Both companies aim to navigate around the restrictions while maintaining market access.
• The move could set a precedent for future tech trade agreements between the U.S. and China.

Quick Breakdown

• Nvidia and AMD agree to 15% revenue share on China sales.
• Del to secure export licenses for semiconductors.
• Part of broader U.S. efforts to control tech exports to China.
• Potential to reshape global semiconductor trade dynamics.

Key Takeaways

This deal highlights the complex relationship between the U.S. and China in the tech sector. By agreeing to share revenue, Nvidia and AMD are ensuring they can still operate in China while complying with U.S. regulations. The arrangement could serve as a blueprint for future tech trade deals, balancing profit and compliance. However, critics may argue that it sets a risky precedent, potentially exposing U.S. companies to similar demands abroad.

This deal is a double-edged sword—it keeps the flow of technology going but at a steep price. The long-term impact on innovation and market competition remains to be seen.

– Lisa Chen, Trade Policy Analyst

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Final Thought

The Nvidia and AMD revenue-sharing deal with the U.S. government marks a significant shift in global tech trade. While it allows these companies to continue operating in China, it raises questions about the long-term sustainability of such arrangements. This could lead to a new era of tech diplomacy, where profit-sharing becomes the norm to navigate geopolitical tensions.

Source & Credit: https://www.reuters.com/world/china/nvidia-amd-pay-15-china-chip-sale-revenues-us-ft-reports-2025-08-10/

Nvidia and AMD Strike Historic Deal with U.S. for China AI Sales

What’s Happening?

Tech giants Nvidia and AMD have agreed to a landmark deal with the U.S. government, allowing them to sell advanced AI chips to China under a unique revenue-sharing model. The agreement involves a 15% cut from sales of two specific chips, marking a pivotal shift in U.S.-China tech relations.

Where Is It Happening?

The deal impacts global semiconductor trade, primarily affecting the U.S. and China.

When Did It Take Place?

The agreement was finalized recently, with implications set to unfold over the coming months.

How Is It Unfolding?

– Nvidia and AMD will sell two specific AI chips to China under new export licenses.
– 15% of the revenue from these sales will go directly to the U.S. Treasury.
– The deal aims to balance technological advancement with national security concerns.
– Both companies will continue to comply with U.S. export controls on other high-tech products.

Quick Breakdown

– **Companies Involved:** Nvidia, AMD.
– **Terms:** 15% revenue share with U.S. government on two China-bound AI chips.
– **Purpose:** Ensure AI technology access while protecting U.S. interests.
– **Broader Impact:** Could set a precedent for future tech trade agreements.

Key Takeaways

This deal represents a strategic compromise, allowing the U.S. to maintain influence over cutting-edge technology while permitting sales to China. By sharing revenue, the government gains financial benefits without fully restricting tech export. The move could ease tensions in the tech sector but may also invite scrutiny over how such agreements balance economic and security interests. Essentially, it’s a balancing act between competitiveness and control in the global AI race.

The U.S. is walking a tightrope here, trying to keep China’s tech ambitions in check without stifling innovation at home. This agreement is a step toward finding common ground, but it’s far from a final act.
– Tech Policy Analyst, Center for Global Trade

Final Thought

The Nvidia and AMD deal with the U.S. government is a game-changer, setting a new tone for tech trade with China. By securing a revenue share, the U.S. ensures its stability in the semiconductor industry while still maintaining leverage. However, the long-term impact remains to be seen as the tech world navigates these uncharted waters.

Source & Credit: https://www.upi.com/Top_News/World-News/2025/08/11/Nvidia-AMD-export-deal-with-govt/8021754900997/

Tether and Rumble Set Sights on Northern Data in Billion-Dollar Play

What’s Happening?

In a surprising twist in the tech acquisition landscape, crypto giant Tether and video platform Rumble have joined forces to pursue a massive $1.17 billion deal for Northern Data, a leading player in the AI infrastructure sector. This move not only highlights the growing intersection of cryptocurrency and AI but also positions Tether as Rumble’s largest shareholder. If successful, the acquisition could reshape the competitive dynamics of both industries.

What’s Happening?

Tether and Rumble have proposed a joint acquisition of Northern Data, aiming to secure full ownership of the AI infrastructure company. This deal marks a significant strategic pivot for both entities, blending Tether’s financial muscle with Rumble’s media reach to dominate the AI hardware market.

Where Is It Happening?

The acquisition is set to take place in the global tech and cryptocurrency markets, with Northern Data’s operations spanning multiple regions, including key data centers in Europe and North America.

When Did It Take Place?

The announcement was made on Monday, detailing the proposal to acquire all outstanding shares of Northern Data. The timeline for completion remains subject to regulatory approvals and final negotiations.

How Is It Unfolding?

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Quick Breakdown

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Key Takeaways

This acquisition underscores the growing trend of cross-industry collaboration as companies seek to leverage emerging technologies. By combining Tether’s financial prowess with Rumble’s media platform, the new partnership aims to solidify its position in the burgeoning AI hardware market. The deal not only expands Tether’s influence into new sectors but also provides Rumble with the necessary infrastructure to support its growing user base and content demands.

This acquisition signals a bold step toward integrating blockchain and AI, setting the stage for unprecedented innovation and competition.

Jane Carter, Tech Analyst

Final Thought

The Tether and Rumble acquisition of Northern Data is a landmark deal that could redefine the future of both AI infrastructure and cryptocurrency. By merging their strengths, the two entities are poised to create a powerful synergy that could rival established industry leaders. As regulatory approvals and negotiations unfold, the tech world watches closely to see how this high-stakes play will reshape the landscape. The success of this deal could set a new precedent for cross-industry acquisitions in the digital age.

Source & Credit: https://cointelegraph.com/news/tether-and-rumble-bet-on-ai-with-full-northern-data-acquisition