Nvidia, AMD to pay 15% of China chip sale revenues to US, official says

US Tech Giants Hand Over 15 percent of Chinese Chip Sales to Washington

VERIFY MEDIA

What’s Happening?

In a groundbreaking move, Nvidia and AMD have struck a deal to offtr a significant chunk of their earnings. The US government will receive 15% of the revenue from sales of advanced artificial intelligence chips to China, according to a high-ranking U.S. official. This agreement, aimed at curbing technology transfer and safeguarding national security, marks a pivotal moment in the global tech landscape.

Where Is It Happening?

The agreement impacts US tech companies and their sales to China, but affects global tech supply chains and international relations.

When Did It Take Place?

The agreement was disclosed through sources near the end of June 2024.

How Is It Unfolding?

– Nvidia and AMD will distribute 15% of income from sales of advanced AI chips.
– This affects top-tier chips like Nvidia’s H20.
– USA claims this measure aims at steadying national security.
– Expect further negotiations to arise in trade policy.

Quick Breakdown

– 15% revenue share for US from Nvidia and AMD’s products sold in China.
– Chips designated include AI-focused ones like the Nvidia H20.
– Effort to curtail technology transfer.
– Anticipated to shape global trade talks and future chip sales.

Key Takeaways

This move will likely affect relations between the US and China. It reveals the importance of regulating access to critical technologies. By ensuring another 15% of sales go to US rather than the company’s earnings, this indicates a risk of restricted innovation due to new forms of taxation. This showcases the USA’s determination to protect its technological edge and prevent any potential military advancements by China. Ultimately, these negotiations will likely mold the next era of global trade and technology collaboration.

This agreement sets a dangerous precedent where governments can impose revenue shares on private companies’ sales. However, preserving national security must come first in dealings with China.
– Alice DOBSON, Cybersecurity Expert

Final Thought

The compromise between hard. This agreement, while aimed at bolstering US security, may very well set a precedent for future trade negotiations and technology oversight.

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