Nvidia and AMD will pay 15% of their China chip sales revenue to the U.S. government to secure export licenses, marking an unprecedented collaboration. This agreement arose following a meeting between Nvidia's CEO and President Trump, allowing both companies to access China's chip market, previously restricted due to U.S. export controls. While this could significantly enhance revenues for Nvidia and AMD, especially AMD which didn't include China sales in its forecasts, it raises critiques surrounding government intrusion in private business and potentially undermines national security by enhancing China's AI capabilities.
Nvidia and Advanced Micro Devices will pay 15% of their China chip sales revenue to the U.S. government to secure export licenses, raising concerns of government overreach.
This unprecedented arrangement could significantly boost revenues for both companies, especially AMD, which did not forecast China sales in its Q3 guidance.
Collection
[
|
...
]