Nvidia & AMD Forge Groundbreaking Deal: U.S. to Receive 15% Revenue Share
Chip industry leaders, Nvidia and AMD, have entered into an extraordinary agreement with the U.S. government. This deal grants the U.S. a 15% share of revenues from specific chips sold to China, in return for export licenses. This information comes courtesy of reports from the Financial Times. The agreement permits both companies to market Nvidia’s H20 and AMD’s MI308 chips within the Chinese market.
This unique revenue-sharing agreement was established following a meeting between Nvidia CEO Jensen Huang and President Trump last week. The administration is striving to balance trade relationships while preserving technological competitiveness. In the wake of this news, both stocks experienced a slight decline of about 1% in premarket trading.
The deal underscores the intricate dynamics of U.S.-China trade relations within the semiconductor sector. Companies in this sector are tasked with the challenge of navigating export restrictions while ensuring access to vital markets. This agreement introduces a novel model for how tech companies might collaborate with government oversight in sensitive international markets.
For more details, visit the original article on CNBC.