Nvidia, AMD to Pay 15% on China AI Chip Sales in US Deal

**Nvidia and AMD Strike Unusual 15% Revenue Share Deal with US**

Imagine Giving Uncle Sam 15% of Your Profits

Picture this: you’re a tech giant raking in billions from AI chip sales in China, and suddenly you’re asked to hand over 15% of those earnings to the US government. Sounds like a plot from a corporate thriller, but for Nvidia and AMD, it’s a new reality. The unusual deal raises eyebrows and questions about the future of tech exports to China.

What’s Happening?

Nvidia and AMD have struck a deal with the US government to pay 15% of their AI chip sales revenues in China to secure export licenses. This move is set to reshape the tech industry’s balance between global trade and national security.

Where Is It Happening?

The agreement impacts US-based Nvidia and AMD, with repercussions for their business operations in China, a key market for AI and semiconductor technology.

When Did It Take Place?

The deal was finalized recently, marking a significant shift in US-China tech relations. Exact dates for implementation are yet to be disclosed.

How Is It Unfolding?

– Nvidia and AMD agreed to a 15% revenue share on Chinese AI chip sales.
– The deal secures vital export licenses from the US government.
– Chinese authorities are likely to scrutinize the agreement closely.
– Industry experts predict potential ripple effects on global semiconductor markets.

Quick Breakdown

– **Deal Terms**: 15% of Chinese AI chip sales to US govt.
– **Companies Involved**: Nvidia, AMD.
– **Impacted Region**: China’s tech and AI sectors.
– **Stakes High**: Potential trade and diplomatic tensions.

Key Takeaways

This deal represents a groundbreaking shift in how the US regulates high-tech exports to China. For Nvidia and AMD, it’s a balance between accessing a lucrative market and complying with US regulations. Beijing, however, may view this as an infringement on its sovereignty, potentially leading to retaliatory measures.

This arrangement sets a precedent that could alter how tech giants navigate geopolitical tensions.

– Dr. Lydia Chen, Tech Policy Analyst

Final Thought

The deal between Nvidia, AMD, and the US government highlights the complex interplay of global commerce and national security. As tech giants walk this tightrope, the world watches to see how China will respond and what it means for the future of the semiconductor industry. One thing is clear: the stakes have never been higher.

Source & Credit: https://www.mercurynews.com/2025/08/11/nvidia-amd-to-pay-15-on-china-ai-chip-sales-in-us-deal/