NVIDIA, AMD To Pay 15% Of Chinese H20 And MI308 AI Chip Sales To US Gov’t

**US Tech Giants Strike Rare Deal: 15% of AI Chip Sales to China Go to Government**

What’s Happening?

NVIDIA and AMD have struck an unprecedented deal with the U.S. government, agreeing to hand over 15% of their AI chip sales revenue to China. This historic agreement paves the way for the companies to resume shipments of advanced AI chips to the Chinese market, a move set to reshape the global tech landscape.

Where Is It Happening?

The agreement impacts the U.S. and China, with repercussions for global tech supply chains and international trade relations.

When Did It Take Place?

The deal was finalized recently, with immediate implications for AI chip exports.

How Is It Unfolding?

– **NVIDIA** will start shipping its **Hopper H20** chips to China under the new terms.
– **AMD** receives approval to export its **Instinct MI308** accelerators.
– The 15% revenue share goes directly to the U.S. government.
– This is the first time U.S. companies have paid a percentage of overseas sales for export licenses.

Quick Breakdown

– **NVIDIA & AMD** ink landmark deal with the U.S. government.
– **15% of China AI chip sales** will be paid to the U.S.
– **Hopper H20 and MI308 chips** approved for export.
– **First-of-its-kind revenue-sharing agreement** sets new precedent.

Key Takeaways

This deal marks a strategic shift in U.S. trade policy, balancing national security concerns with economic interests. By allowing NVIDIA and AMD to sell high-performance AI chips in China while securing a financial stake, the U.S. government retains oversight over critical technology exports. The move could set a precedent for future tech trade agreements, blending profit with regulation in an increasingly competitive global market. Companies must now navigate complex geopolitical waters while maintaining corporate growth.

This agreement signals a new era in tech trade, where revenue-sharing could become the norm for high-stakes industries like AI.
– Tech Policy Analyst, Government Relations Expert

Final Thought

The U.S.-China AI chip deal is a bold experiment in balancing trade, security, and corporate interests. While NVIDIA and AMD gain access to China’s lucrative market, the 15% revenue share ensures the U.S. government remains involved in critical tech exports. This precedent could redefine how tech giants operate globally, blending profit motives with geopolitical strategy.

Source & Credit: https://hothardware.com/news/nvidia-amd-pay-us-govt-15-revenue-ai-chips-sold-china