Nvidia and AMD to Pay 15% of China Chip Sale Revenues to US Government

In a big development within the tech enterprise, Nvidia and AMD have agreed to pay 15% in their revenues from chip income in China to the U.S. Authorities. This unparalleled flow comes as a part of a deal to achieve export licenses for their superior AI chips, especially Nvidia's H20 and AMD's MI308. Citeturn0news13

What Does This Deal Mean?

The agreement stipulates that each companies will remit 15% of their income from those chips in China to the U.S. Government. This arrangement was finalized after conferences between Nvidia CEO Jensen Huang and President Donald Trump, leading to the issuance of the important export licenses by the U.S. Commerce Department. Citeturn0news14

For Nvidia, this deal may want to translate to approximately $23 billion in revenue from H20 chip income in China in 2025. AMD's MI308 chips also are anticipated to generate considerable sales, though particular figures have no longer been disclosed. Citeturn0news13

Why Is This Deal Controversial?

The choice has sparked debate among specialists and officers. Some argue that linking export controls to financial contributions may want to set a regarding precedent. Critics endorse that this circulate might undermine the integrity of U.S. Export regulations, which can be historically based on countrywide protection considerations in preference to economic incentives. Citeturn0news14

Additionally, there are issues about the capability implications for U.S.-China members of the family. China has previously raised problems regarding the safety of American-made chips, and this new arrangement may complicate diplomatic efforts. Citeturn0news13

What Do Nvidia and AMD Say?

Nvidia has showed its compliance with U.S. Regulations but refrained from commenting at once on the revenue-sharing issue. The company emphasised its commitment to adhering to the rules set

• China Tech Trade
• U.S. Government
• Chip Sales
• AMD
• Nvidia