Historic Agreement: Nvidia and AMD Grant US Government Share of AI Chip Revenue from China

New Agreement: Companies Nvidia and AMD have agreed to grant the US government a 15% share of AI chip sales revenue destined for China. This agreement comes as a fundamental condition for obtaining the necessary export licenses to sell Nvidia H20 and AMD MI308 chips in the Chinese market.

A Historical Precedent in Trade Policies

Pivotal Development: This deal marks a pivotal development within the framework of trade policies imposed by the Trump administration, which had previously threatened to impose strict tariffs on semiconductor imports. This agreement sets a precedent, as no American company has ever agreed to pay a percentage of its revenues in exchange for export licenses, according to experts in export controls. Both companies affirm their commitment to the rules set by the United States to regulate their participation in global markets.

Issuance of Export Licenses and US Reversals

Government Move: The US Department of Commerce began issuing export licenses for Nvidia H20 chips to China last week, removing a major obstacle to the leading company in the AI sector's access to this vital market. It is worth noting that the United States had reversed a ban it imposed in April on the sale of H20 chips to China last month. Nvidia had designed this chip specifically for the Chinese market to comply with the AI chip export controls established under the Biden administration.