Nvidia and AMD are required to transfer 15 percent of their revenue from AI chip sales to China to the US government to obtain export licenses. This agreement was reportedly reached through direct negotiations, positioning the federal government as a business partner for their activities in China. The deal follows Nvidia's permission to export a modified H20 AI chip after a previous ban. Analysts note this arrangement is rare and aligns with a strategy to enhance US influence in international business. Similar tactics have been seen previously in other deals involving US interests.
Nvidia and AMD must hand over 15 percent of their revenue from AI chip sales to China to the US government in exchange for export licenses.
The agreement is a structural transfer of income, effectively positioning the federal government as a business partner to the chipmakers for their activities in China.
This type of agreement is uncommon, indicating a broader strategy to strengthen US influence on international business arrangements.
Nvidia CEO Jensen Huang reportedly spoke with President Trump to agree on the payment for export licenses, illustrating direct negotiations.
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