AI
Nvidia, AMD may sell high-end AI chips to China if they pay US a cut
Nvidia, AMD Strike Deal to Sell AI Chips in China Under New US Rules
In a surprising twist to the global AI chip race, you won’t believe what two tech giants have agreed to do to gain access to China’s lucrative market. Picture this: a blockchain-like system of revenue sharing, not with investors, but with the U.S. government. What could possibly be next on the table?
What’s Happening?
Nvidia and AMD have reportedly secured licenses to sell high-end AI chips to China by agreeing to pay the U.S. government 15% of the revenue from these sales. This unexpected move marks a significant shift in the AI chip narrative.
Where Is It Happening?
Primarily between the United States and China, but the focus is on commercializing high-end AI chips in the Chinese market.
When Did It Take Place?
The agreement comes amidst ongoing scrutiny of AI chip exports to China, with reports suggesting a recent development still awaiting official confirmation.
How Is It Unfolding?
- The U.S. government would receive a 15% revenue share from certain AI hardware sales.
- Licenses are contingent upon revenue sharing, not just security concerns.
- The move might encourage other AI hardware vendors under similar scrutiny.
- Formal agreements and timelines remain ticabslack for.
Quick Breakdown
- Companies Involved: Nvidia, AMD
- U.S. Government: Receives a 15% revenue cut from specific sales
- Geographic Focus: Sales of AI chips in China
- Impetus: Secures sales licenses where previously restricted
Key Takeaways
This marks a notable departure from the typical narrative surrounding AI and semiconductors, which has traditionally been about national security. By positioning the trade as a revenue-sharing arrangement, the U.S. may be opening doors for companies like Nvidia and AMD. While this allows companies to tap into a lucrative market, it also raises questions about who benefits from tech advancements and how.
Just as bookmakers profit from the house edge, the U.S. government is dipping into the generational momentum of tech giants’ sales.
If the 15% hold is seen as a fair trade-off for access, it could set a precedent for other high-tech industries facing similar penalties.
– Maeve Alexander, AI Market Analyst
Final Thought
Access to China’s tech market is redefined, with the U.S. government essentially acting as a middleman. Companies now face a choice: navigate complex geopolitical waters or pay the price to do business.
Source & Credit: https://techcrunch.com/2025/08/11/nvidia-amd-may-sell-high-end-ai-chips-to-china-if-they-pay-us-a-cut/