Historic 15% Revenue Deal Struck by Trump with Nvidia and AMD for China Sales
In a groundbreaking move, President Trump has announced a deal with Nvidia and AMD. These tech giants have agreed to pay the U.S. government 15% of their revenues from AI chip sales to China. This is in exchange for export licenses, allowing Nvidia to sell its H20 AI accelerator and AMD to sell its MI308 chip to Chinese customers. This deal puts an end to a ban that cost these companies billions in lost revenue.
During a White House news conference, Trump revealed that he initially requested 20% but negotiated down to 15% with Nvidia CEO Jensen Huang. Trump praised Huang, referring to him as “a great guy.” The arrangement applies to chips specifically designed for the Chinese market. These chips are less powerful than the companies’ most advanced processors. Trump dismissed the H20 as “an old chip” that doesn’t significantly advance China’s AI capabilities.
The revenue-sharing agreement represents a fresh approach to export controls. It could potentially generate billions for the U.S. government while allowing American companies to access the lucrative Chinese market. However, legal experts are questioning the constitutionality of the arrangement, labeling it as historically unprecedented. Combined sales could reach $35 billion annually, meaning the U.S. government could collect over $5 billion per year from this unique deal.
Source: CNBC