Nvidia and AMD Contribute 15 Percent of AI Chip Sales in China to the US
American chipmakers Nvidia and Advanced Micro Devices (AMD) have agreed to pay 15 percent of their revenue from AI chip sales in China to the US government.
This unusual arrangement is part of a deal to secure export licenses, reports Bloomberg.
For Nvidia, this involves 15 percent of revenue from sales of H20-type AI chips in China. AMD will contribute the same percentage from revenue generated by MI308 chip sales. The agreement is a further example of US President Donald Trump’s ongoing efforts to negotiate financial incentives in exchange for trade concessions.
The US government has previously expressed willingness to ease import tariffs, among other things, in exchange for massive investments in the US. Tech giant Apple pledged to invest $600 billion in domestic production.
Such a limited and selective export tax, however, is unusual, according to Bloomberg. According to The New York Times, the agreement could generate more than $2 billion for the government.
US President Donald Trump announced last week that he planned to impose 100 percent tariffs on “chips and semiconductors,” without specifying the effective date of the new tax. In early July, Nvidia became the first company ever to have a market capitalisation of over $4 trillion.
