Nvidia, AMD deal with U.S. govt. to share revenue from China AI chips

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/