CNBC Daily Open: The U.S. government gets a slice of the AI pie
The seismic shifts from the AI wave can be felt everywhere — from fueling the rise of new billionaires at a record pace to drastically changing the cybersecurity and defense landscape and how governments are looking to gain from the boom.
No wonder semiconductors powering AI have become an important piece on the trade chess board. In fact, the U.S. government is trying to profit from allowing chip companies access to the large Chinese market. On Wednesday, reportedly Nvidia CEO Jensen Huang met with U.S. President Donald Trump at the White House and agreed to give the federal government a 15% cut of its sales in China. Another chipmaker, AMD, agreed to the same deal.
Nvidia, meanwhile, has been fending off allegations from Chinese state media that its H20 AI chips pose a national security risk for China as it looks to resume sales to the country.
While investors appear to be cheering on AI stocks — Nvidia gained over 1% Friday — they are also bracing for a data-heavy week ahead. The consumer price index, out Tuesday, will be particularly in focus as it could offer clarity on the Federal Reserve's rate path. Nvidia refutes security risk allegations. The chip giant pushed back Sunday after an account affiliated with the Chinese state broadcaster CCTV said its chips were not safe and had a "remote shutdown" function.
U.S. stocks post a winning week. On Friday, the Nasdaq Composite jumped 0.98% to a fresh record high. The S&P 500 also gained to close just a few points shy from a new record. Asia-Pacific markets traded subdued Monday as the U.S.-China tariff truce deadline loomed.
Nvidia and AMD agree to pay 15% of China chip sales to the U.S. The chipmakers will receive export licenses in exchange, in an unprecedented arrangement with the White House, according to the Financial Times.
Loud luxury makes a comeback. High-end brands are pivoting to visible opulence in a bid to woo shoppers as they grapple with multiple headwinds, including trade tariffs and soft consumer sentiment.
[PRO] Data-heavy week for Wall Street. The latest consumer price index is set to release Tuesday, and the producer price index is due out Thursday. Investors also await other economic data such as retail sales, as they assess whether the Federal Reserve will cut rates in September.
SoftBank founder Son makes his biggest bet by staking the Japanese giant's future on AI
Masayoshi Son is betting that his brainchild, SoftBank, will be the center of a revolution driven by artificial intelligence. Son says artificial superintelligence — AI that is 10,000 times smarter than humans — will be here in 10 years.
He's made a career out of big plays; notably, one was a $20 million investment into Chinese e-commerce company Alibaba in 2000 that has made billions for SoftBank.
Now, the billionaire is hoping to replicate that success with a series of investments and acquisitions in AI firms that will put SoftBank at the center of a fundamental technological shift.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Trump tariffs live updates: Trump says gold will not face a tariff; Nvidia, AMD agree to unusual revenue deal
President Trump on Monday said imports of gold (GC=F) to the US would not face a tariff. "Gold will not be Tariffed!" Trump wrote on social media. Gold futures were little changed after Trump's post. Prices for the metal were sliding on Monday. The White House had said last week that the administration would issue a new policy clarifying whether gold bars would be subject to duties after a US government agency said they would, prompting chaos and confusion in the market. Elsewhere on Monday, Nvidia (NVDA) and AMD (AMD) agreed to pay the US 15% of the revenue for AI-related chip sales to China, adding a monetization layer to the Trump administration's tariff policy that has reoriented global trade relationships. The New York Times reported that Nvidia CEO Jensen Huang agreed to the arrangement, which is "essentially making the federal government a partner in Nvidia's business in China," at a meeting with President Trump on Wednesday and that licenses for the chip sales followed on Friday. On Monday morning, AMD confirmed that "initial" China licenses for AI chips were approved. "To call this unusual or unprecedented would be a staggering understatement," Stephen Olson, a former US trade negotiator, told Bloomberg. "What we are seeing is in effect the monetization of US trade policy in which US companies must pay the US government for permission to export. If that's the case, we've entered into a new and dangerous world." The chips include Nvidia's H20 AI accelerator and AMD's MI308 chips, which the Trump administration had previously targeted with export controls. Also on Sunday, Trump urged China to quadruple soybean purchases ahead of an Tuesday deadline for the countries to extend their truce from sky-high tariffs on each other. Asked if he'd extend that deadline, Trump said Monday, "We'll see what happens," but added that China has been "dealing quite nicely" with the US. Trump's latest sweeping "reciprocal" tariffs hit US trade partners last week. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Trump says, 'Gold will not be Tariffed!' President Trump posted on social media that gold will not be subject to tariffs after a surprise US Customs and Border Protection (CBP) ruling sparked confusion over whether the precious metal faced duties. "A Statement from Donald J. Trump, President of the United States of America: Gold will not be Tariffed!" Trump wrote on Truth Social on Monday afternoon. On Friday, the Financial Times reported that CBP classified Swiss one-kilogram and 100-ounce bars of gold as subject to 39% tariffs recently imposed on Switzerland by the Trump administration. Gold futures (GC=F) declined 2.5% early on Monday as investors awaited clarity from the White House over its trade position on the precious metal amid reports that imports of Swiss gold bars would not be exempt from tariffs. Small US firms paying Trump tariffs face $202B annual hit Small US businesses are struggling to comply with President Trump's new tariffs. These companies, which are the source of more than half of the country's job creation are also finding it hard to cope with the growing financial strain from higher import costs. Bloomberg News: Read more here. Trump on China extension: We'll see what happens President Trump said China has been "dealing quite nicely" with the US, a possible hint that his administration is preparing to extend the countries' trade truce past a deadline that expires Tuesday. "We'll see what happens," he said during a White House press conference, adding, "They've been dealing quite nicely." The countries have held multiple rounds of trade talks during the 90-day suspension of sky-high tariffs on each other. Both sides have hailed progress in those talks. An extension into the fall could potentially set up a Trump meeting with Chinese leader Xi Jinping, which Trump has suggested could happen before the end of the year. Swiss government to meet pharma firms to discuss US tariffs The Swiss government is due to meet this week with leaders from Swiss pharmaceutical companies Roche and Novartis, which have faced pressure from President Trump to lower their drug prices in the US. The meeting comes as Switzerland aims to negotiate for a lower tariff rate than the 39% rate the Trump administration imposed last week. And should Trump follow through on pharmaceutical tariffs as well, Roche and Novartis are considered to be more exposed, as they have comparatively fewer US manufacturing sites. From Reuters: Read more here. New gold tariffs are in effect. Will Costco gold bars be affected? Gold (GC=F) has been surging all year, and buying gold bars from Costco is just about the easiest way to get your hands on the precious metal — if you're lucky enough to find them in stock. However, the surprising announcement of additional tariffs on gold bars by US Customs and Border Protection (CBP) left many wondering if the duties applied to Costco's gold bars as well. Yahoo Finance's Hal Bundrick reports: Read more here. US consumers to bear brunt of tariff hit: Goldman Goldman Sachs GS) says that President Trump's tariffs are only beginning to raise prices for shoppers, adding more uncertainty to the Treasury market where investors are unsure about how quickly interest rates will be cut. Bloomberg News reports: Read more here. Nvidia, AMD to pay 15% on China AI chip sales in US deal Nvidia (NVDA) and AMD (AMD) have agreed to give 15% of their revenue from AI chip sales in China to the US government. This deal helps them get export licenses but is an unusual step that might worry both companies and Beijing. Nvidia will share 15% of earnings from its H20 AI accelerator in China, while AMD will do the same for its MI308 chip. Bloomberg News reports: Read more here. Why Trump's soybean ask of China is 'highly unlikely' China is the world's largest soybean buyer, with nearly a quarter of those purchases coming from the US (and most of the rest coming from Brazil). President Trump's statement that he hopes "China will quickly quadruple its soybean orders" would require China to import the vast majority of its soybeans from the U.S. "It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US," Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters. Read more here. US gold futures fall as traders await clarification on tariffs US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. Swiss economy seen weathering Trump's tariff shock for now Bloomberg News reports: Read more here. Commentary: Tariffs are denting profits, and maybe soon your portfolio With over two-thirds of companies having reported earnings, Yahoo Finance found more than four dozen large firms saying tariffs are impacting their businesses in some material way. Yahoo Finance's Rick Newman reports: Read more here. A 240-year-old Swiss watchmaker's race to beat Trump's tariff deadline It was a chaotic week for the 240-year-old Swiss watch manufacturer DuBois et fils, as the company rushed to ship watches before President Trump's surprise 39% tariff rate on Switzerland went into effect on Thursday. It was a race against time for DuBois CEO Thomas Steinemann and his company to ship five high-end watches to the US before blocking orders on its US website. Overall, the US accounts for 17% of Switzerland's watch exports. As of April, goods from the country faced a much lower 10% tariff rate. Reuters reports: Read more here. Tariffs are starting to squeeze farmers' profits President Trump has said he loves farmers, but his policies are starting to ripple across the agriculture industry. Trump's tariff policies, in particular, are beginning to raise the cost of machinery and fertilizers, weighing on profits. Bloomberg reports: Read more here. The US has slapped a 39% tariff on Switzerland, leaving the country's leaders reeling Bloomberg took a deep dive looking at how the tariff negotiations between the Trump administration and Switzerland began with promise, but eventually led to the US slapping a devastating 39% levy on the country: Read more here. Trump says US court ruling against tariff authority 'would be 1929 all over again' Yahoo Finance's Alexis Keenan reports: Read more here. Carney is patching up ties with Mexico in face of Trump threats Canadian Prime Minister Mark Carney is working to repair relations with Mexico as both nations prepare for the fallout from US tariffs. Canrey recently met with Mexican President Claudia Sheinbaum and various corporate executives. Bloomberg reports: Read more from Bloomberg here. Swiss plane maker Pilatus halts business jet deliveries to US over tariffs Swiss aircraft manufacturer Pilatus said it temporarily stopped deliveries of its PC-12 and PC-24 business jets to the US after President Trump imposed a punishing 39% tariff rate on imports from Switzerland. "The new customs tariff imposed by the US authorities represents a significant competitive disadvantage for Pilatus," the privately held company said. From Reuters: Read more here. Under Armour forecasts downbeat quarterly sales, shares drop Under Armour (UA) stock slumped 12% before the bell on Friday after the sportswear maker forecast second-quarter revenue below Wall Street estimates. The company is grappling with muted demand in North America due to still-high inflation and tariff uncertainty. Reuters reports: Read more here. China defends buying Russian oil after Trump's tariff threat China defended its purchase of Russian oil on Friday, pushing back against President Trumps threat to impose higher tariffs on Beijing for buying energy from Moscow. Trump warned both China and India this week and said he would impose higher tariffs on the nations if they didn't stop buying oil from Russia. The US president followed through on his threat by slapping an additional 25% tariff on India, bringing the total to 50%. Bloomberg News reports: Read more here. Gold bar tariff surprise gives new blow to Switzerland The US has imposed tariffs on imports of 1kg and 100oz gold bars, unleashing fresh turmoil in the global bullion market. The move threatens trade from Switzerland and other major refining centers. US Customs and Border Protection confirmed that these gold bars are now subject to tariffs, contradicting earlier industry expectations. The Financial Times first reported this change. Bloomberg reports: Read more here. Trump says, 'Gold will not be Tariffed!' President Trump posted on social media that gold will not be subject to tariffs after a surprise US Customs and Border Protection (CBP) ruling sparked confusion over whether the precious metal faced duties. "A Statement from Donald J. Trump, President of the United States of America: Gold will not be Tariffed!" Trump wrote on Truth Social on Monday afternoon. On Friday, the Financial Times reported that CBP classified Swiss one-kilogram and 100-ounce bars of gold as subject to 39% tariffs recently imposed on Switzerland by the Trump administration. Gold futures (GC=F) declined 2.5% early on Monday as investors awaited clarity from the White House over its trade position on the precious metal amid reports that imports of Swiss gold bars would not be exempt from tariffs. President Trump posted on social media that gold will not be subject to tariffs after a surprise US Customs and Border Protection (CBP) ruling sparked confusion over whether the precious metal faced duties. "A Statement from Donald J. Trump, President of the United States of America: Gold will not be Tariffed!" Trump wrote on Truth Social on Monday afternoon. On Friday, the Financial Times reported that CBP classified Swiss one-kilogram and 100-ounce bars of gold as subject to 39% tariffs recently imposed on Switzerland by the Trump administration. Gold futures (GC=F) declined 2.5% early on Monday as investors awaited clarity from the White House over its trade position on the precious metal amid reports that imports of Swiss gold bars would not be exempt from tariffs. Small US firms paying Trump tariffs face $202B annual hit Small US businesses are struggling to comply with President Trump's new tariffs. These companies, which are the source of more than half of the country's job creation are also finding it hard to cope with the growing financial strain from higher import costs. Bloomberg News: Read more here. Small US businesses are struggling to comply with President Trump's new tariffs. These companies, which are the source of more than half of the country's job creation are also finding it hard to cope with the growing financial strain from higher import costs. Bloomberg News: Read more here. Trump on China extension: We'll see what happens President Trump said China has been "dealing quite nicely" with the US, a possible hint that his administration is preparing to extend the countries' trade truce past a deadline that expires Tuesday. "We'll see what happens," he said during a White House press conference, adding, "They've been dealing quite nicely." The countries have held multiple rounds of trade talks during the 90-day suspension of sky-high tariffs on each other. Both sides have hailed progress in those talks. An extension into the fall could potentially set up a Trump meeting with Chinese leader Xi Jinping, which Trump has suggested could happen before the end of the year. President Trump said China has been "dealing quite nicely" with the US, a possible hint that his administration is preparing to extend the countries' trade truce past a deadline that expires Tuesday. "We'll see what happens," he said during a White House press conference, adding, "They've been dealing quite nicely." The countries have held multiple rounds of trade talks during the 90-day suspension of sky-high tariffs on each other. Both sides have hailed progress in those talks. An extension into the fall could potentially set up a Trump meeting with Chinese leader Xi Jinping, which Trump has suggested could happen before the end of the year. Swiss government to meet pharma firms to discuss US tariffs The Swiss government is due to meet this week with leaders from Swiss pharmaceutical companies Roche and Novartis, which have faced pressure from President Trump to lower their drug prices in the US. The meeting comes as Switzerland aims to negotiate for a lower tariff rate than the 39% rate the Trump administration imposed last week. And should Trump follow through on pharmaceutical tariffs as well, Roche and Novartis are considered to be more exposed, as they have comparatively fewer US manufacturing sites. From Reuters: Read more here. The Swiss government is due to meet this week with leaders from Swiss pharmaceutical companies Roche and Novartis, which have faced pressure from President Trump to lower their drug prices in the US. The meeting comes as Switzerland aims to negotiate for a lower tariff rate than the 39% rate the Trump administration imposed last week. And should Trump follow through on pharmaceutical tariffs as well, Roche and Novartis are considered to be more exposed, as they have comparatively fewer US manufacturing sites. From Reuters: Read more here. New gold tariffs are in effect. Will Costco gold bars be affected? Gold (GC=F) has been surging all year, and buying gold bars from Costco is just about the easiest way to get your hands on the precious metal — if you're lucky enough to find them in stock. However, the surprising announcement of additional tariffs on gold bars by US Customs and Border Protection (CBP) left many wondering if the duties applied to Costco's gold bars as well. Yahoo Finance's Hal Bundrick reports: Read more here. Gold (GC=F) has been surging all year, and buying gold bars from Costco is just about the easiest way to get your hands on the precious metal — if you're lucky enough to find them in stock. However, the surprising announcement of additional tariffs on gold bars by US Customs and Border Protection (CBP) left many wondering if the duties applied to Costco's gold bars as well. Yahoo Finance's Hal Bundrick reports: Read more here. US consumers to bear brunt of tariff hit: Goldman Goldman Sachs GS) says that President Trump's tariffs are only beginning to raise prices for shoppers, adding more uncertainty to the Treasury market where investors are unsure about how quickly interest rates will be cut. Bloomberg News reports: Read more here. Goldman Sachs GS) says that President Trump's tariffs are only beginning to raise prices for shoppers, adding more uncertainty to the Treasury market where investors are unsure about how quickly interest rates will be cut. Bloomberg News reports: Read more here. Nvidia, AMD to pay 15% on China AI chip sales in US deal Nvidia (NVDA) and AMD (AMD) have agreed to give 15% of their revenue from AI chip sales in China to the US government. This deal helps them get export licenses but is an unusual step that might worry both companies and Beijing. Nvidia will share 15% of earnings from its H20 AI accelerator in China, while AMD will do the same for its MI308 chip. Bloomberg News reports: Read more here. Nvidia (NVDA) and AMD (AMD) have agreed to give 15% of their revenue from AI chip sales in China to the US government. This deal helps them get export licenses but is an unusual step that might worry both companies and Beijing. Nvidia will share 15% of earnings from its H20 AI accelerator in China, while AMD will do the same for its MI308 chip. Bloomberg News reports: Read more here. Why Trump's soybean ask of China is 'highly unlikely' China is the world's largest soybean buyer, with nearly a quarter of those purchases coming from the US (and most of the rest coming from Brazil). President Trump's statement that he hopes "China will quickly quadruple its soybean orders" would require China to import the vast majority of its soybeans from the U.S. "It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US," Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters. Read more here. China is the world's largest soybean buyer, with nearly a quarter of those purchases coming from the US (and most of the rest coming from Brazil). President Trump's statement that he hopes "China will quickly quadruple its soybean orders" would require China to import the vast majority of its soybeans from the U.S. "It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US," Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters. Read more here. US gold futures fall as traders await clarification on tariffs US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. Swiss economy seen weathering Trump's tariff shock for now Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Commentary: Tariffs are denting profits, and maybe soon your portfolio With over two-thirds of companies having reported earnings, Yahoo Finance found more than four dozen large firms saying tariffs are impacting their businesses in some material way. Yahoo Finance's Rick Newman reports: Read more here. With over two-thirds of companies having reported earnings, Yahoo Finance found more than four dozen large firms saying tariffs are impacting their businesses in some material way. Yahoo Finance's Rick Newman reports: Read more here. A 240-year-old Swiss watchmaker's race to beat Trump's tariff deadline It was a chaotic week for the 240-year-old Swiss watch manufacturer DuBois et fils, as the company rushed to ship watches before President Trump's surprise 39% tariff rate on Switzerland went into effect on Thursday. It was a race against time for DuBois CEO Thomas Steinemann and his company to ship five high-end watches to the US before blocking orders on its US website. Overall, the US accounts for 17% of Switzerland's watch exports. As of April, goods from the country faced a much lower 10% tariff rate. Reuters reports: Read more here. It was a chaotic week for the 240-year-old Swiss watch manufacturer DuBois et fils, as the company rushed to ship watches before President Trump's surprise 39% tariff rate on Switzerland went into effect on Thursday. It was a race against time for DuBois CEO Thomas Steinemann and his company to ship five high-end watches to the US before blocking orders on its US website. Overall, the US accounts for 17% of Switzerland's watch exports. As of April, goods from the country faced a much lower 10% tariff rate. Reuters reports: Read more here. Tariffs are starting to squeeze farmers' profits President Trump has said he loves farmers, but his policies are starting to ripple across the agriculture industry. Trump's tariff policies, in particular, are beginning to raise the cost of machinery and fertilizers, weighing on profits. Bloomberg reports: Read more here. President Trump has said he loves farmers, but his policies are starting to ripple across the agriculture industry. Trump's tariff policies, in particular, are beginning to raise the cost of machinery and fertilizers, weighing on profits. Bloomberg reports: Read more here. The US has slapped a 39% tariff on Switzerland, leaving the country's leaders reeling Bloomberg took a deep dive looking at how the tariff negotiations between the Trump administration and Switzerland began with promise, but eventually led to the US slapping a devastating 39% levy on the country: Read more here. Bloomberg took a deep dive looking at how the tariff negotiations between the Trump administration and Switzerland began with promise, but eventually led to the US slapping a devastating 39% levy on the country: Read more here. Trump says US court ruling against tariff authority 'would be 1929 all over again' Yahoo Finance's Alexis Keenan reports: Read more here. Yahoo Finance's Alexis Keenan reports: Read more here. Carney is patching up ties with Mexico in face of Trump threats Canadian Prime Minister Mark Carney is working to repair relations with Mexico as both nations prepare for the fallout from US tariffs. Canrey recently met with Mexican President Claudia Sheinbaum and various corporate executives. Bloomberg reports: Read more from Bloomberg here. Canadian Prime Minister Mark Carney is working to repair relations with Mexico as both nations prepare for the fallout from US tariffs. Canrey recently met with Mexican President Claudia Sheinbaum and various corporate executives. Bloomberg reports: Read more from Bloomberg here. Swiss plane maker Pilatus halts business jet deliveries to US over tariffs Swiss aircraft manufacturer Pilatus said it temporarily stopped deliveries of its PC-12 and PC-24 business jets to the US after President Trump imposed a punishing 39% tariff rate on imports from Switzerland. "The new customs tariff imposed by the US authorities represents a significant competitive disadvantage for Pilatus," the privately held company said. From Reuters: Read more here. Swiss aircraft manufacturer Pilatus said it temporarily stopped deliveries of its PC-12 and PC-24 business jets to the US after President Trump imposed a punishing 39% tariff rate on imports from Switzerland. "The new customs tariff imposed by the US authorities represents a significant competitive disadvantage for Pilatus," the privately held company said. From Reuters: Read more here. Under Armour forecasts downbeat quarterly sales, shares drop Under Armour (UA) stock slumped 12% before the bell on Friday after the sportswear maker forecast second-quarter revenue below Wall Street estimates. The company is grappling with muted demand in North America due to still-high inflation and tariff uncertainty. Reuters reports: Read more here. Under Armour (UA) stock slumped 12% before the bell on Friday after the sportswear maker forecast second-quarter revenue below Wall Street estimates. The company is grappling with muted demand in North America due to still-high inflation and tariff uncertainty. Reuters reports: Read more here. China defends buying Russian oil after Trump's tariff threat China defended its purchase of Russian oil on Friday, pushing back against President Trumps threat to impose higher tariffs on Beijing for buying energy from Moscow. Trump warned both China and India this week and said he would impose higher tariffs on the nations if they didn't stop buying oil from Russia. The US president followed through on his threat by slapping an additional 25% tariff on India, bringing the total to 50%. Bloomberg News reports: Read more here. China defended its purchase of Russian oil on Friday, pushing back against President Trumps threat to impose higher tariffs on Beijing for buying energy from Moscow. Trump warned both China and India this week and said he would impose higher tariffs on the nations if they didn't stop buying oil from Russia. The US president followed through on his threat by slapping an additional 25% tariff on India, bringing the total to 50%. Bloomberg News reports: Read more here. Gold bar tariff surprise gives new blow to Switzerland The US has imposed tariffs on imports of 1kg and 100oz gold bars, unleashing fresh turmoil in the global bullion market. The move threatens trade from Switzerland and other major refining centers. US Customs and Border Protection confirmed that these gold bars are now subject to tariffs, contradicting earlier industry expectations. The Financial Times first reported this change. Bloomberg reports: Read more here. The US has imposed tariffs on imports of 1kg and 100oz gold bars, unleashing fresh turmoil in the global bullion market. The move threatens trade from Switzerland and other major refining centers. US Customs and Border Protection confirmed that these gold bars are now subject to tariffs, contradicting earlier industry expectations. The Financial Times first reported this change. Bloomberg reports: Read more here.
Yahoo
10 minutes ago
- Yahoo
Why the Nvidia, AMD revenue-sharing pact with the White House is ripe for a legal challenge
The White House's reported deals with chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD) for a cut of their chip sales to China are unorthodox and unprecedented — and likely to end up in court. The two pacts, according to multiple reports, would divert 15% of the companies' respective sales revenues earned on China-destined chips to the US government. In exchange for the profit sharing, the US would grant export licenses allowing Nvidia to resume sales of its H20 chips to China and AMD to resume sales of its MI308 chips to China. Wall Street is happy, at least in early afternoon trading on Monday: Both Nvidia and AMD stocks are up. But legal experts say that neither the president nor Congress is empowered to tax exports. Article I, Section 9, of the US Constitution, known as the Export Clause, prohibits such levies, saying, "No Tax or Duty shall be laid on Articles exported from any State.' 'The Constitution is clear that there really cannot be any tax on exports,' said Douglas Jacobson, an international trade lawyer with Jacobson Burton Kelley. 'In my view, it's a slam-dunk unconstitutional tax on exports.' And the US Supreme Court has interpreted the Export Clause to prohibit Congress from imposing duties on exports, even when they're characterized otherwise. Its controlling view on federally mandated export charges was stated in the unanimous 1998 decision in United States v. United States Shoe Corp. In that case, the high court struck down a congressionally approved ad valorem charge of 0.125% on exports imposed by the US Customs Service. The charge, calculated based on the value of commercial cargo shipped through US ports, known as the Harbor Maintenance Tax (HMT), was intended to fund upkeep on US harbors. On behalf of former President Bill Clinton's administration, the US Solicitor General argued that the HMT was a 'user fee,' and not a tax. But the court disagreed, reasoning that because the charge operated like an export tax, it violated the Export Clause. Siding with US Shoe, the court said in its opinion that the HMT 'bears the indicia of a tax.' Beyond the Constitution's export tax prohibition, the Export Controls Reform Act, passed by Congress in 2018, specifically prohibits charging exporters to obtain export licenses. Under US law, certain fees on export licenses have been held constitutional. Military exports, for example, are treated differently from non-military goods and fall under the administration of the US State Department, which requires manufacturers of military items to pay annual licensing fees. Even so, those fees are not based on the value of an applicant's exports. 'User fees are entirely permissible,' Jacobson said, but a deal for chipmakers to pay the government a 15% profit share acts like a reverse tariff and 'is clearly not a user fee.' "None of us have seen the government get a piece of the pie in this explicit way before," Tom Essaye, Sevens Report Research founder, told Yahoo Finance on Monday. A spokesperson for Nvidia neither confirmed nor acknowledged the reported profit-sharing agreement. 'We follow rules the US government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,' the spokesperson said. 'America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race." Exactly who might legally challenge revenue sharing plans is not altogether clear. Nvidia and AMD are unlikely to dispute their own accords. And so far, challenges from rival chipmakers are unlikely, as there's no indication that other exporters would be subject to similar agreements. Potential challenges, however, could come from Nvidia and AMD shareholders and possibly from state attorneys general. Jacobson, the trade lawyer, said it's possible shareholders could argue that the profit-sharing agreements create an adverse effect on the price of the companies' shares because the businesses are subject to an unconstitutional tax that decreases their revenue. State attorneys general, on the other hand, may be able to argue that the deal impacts a company operating within their state or jeopardizes the state's revenue. For Nvidia and AMD, the agreements make sense as a short-term play, Jacobson said, even though they would likely be invalidated if challenged. By signing on to the agreements, the companies may be able to get their chips flowing to China and later deal with clawing back damages they may be entitled to. In an interview with Yahoo Finance, Pangaea Policy founder Terry Haines said the agreements may turn out to be a "one-off" for the administration due to concerns that the strategy could spread beyond Nvidia and AMD and because of China's concerns that US chips could contain "backdoors" that allow for US tracking. "The Chinese are saying they may not want the chips after all," Haines said. Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on X @alexiskweed. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10 minutes ago
- Yahoo
LiTime Day Launches Globally: 16 Years of Lithium Battery Expertise Building a Full-Scenario Energy Ecosystem
Three Breakthrough Products & Four Flagship Application Solutions at Limited-Time Discounts — Grand Celebration Begins August 11 Shenzhen, China, Aug. 11, 2025 (GLOBE NEWSWIRE) -- To celebrate '16 Years of LiFePO₄ Battery Expertise', LiTime will launch an 18-day brand festival from August 11-27 (PDT), featuring major annual discounts on all best-selling products. As a global pioneer in lithium iron phosphate (LiFePO₄) technology, LiTime continues to drive innovation through a user-first, tech-forward approach. With standout product lines like the Mini Series, Trolling Motor Series, and T5.0 Smart ComFlex Series, the company is redefining the boundaries of outdoor and residential energy, delivering a storage ecosystem that is safe, efficient, and intelligently extreme weather on the rise and outdoor power needs hitting record highs, renewable energy storage demand surged 32% year-over-year in 2024, according to data from the U.S. Department of Energy. As a result, high-efficiency storage solutions are no longer a luxury — they're a necessity. Today's market is increasingly shaped by two key trends: energy density and intelligent system integration. As a one-stop independent energy solution expert with 16 years of industry experience, LiTime has consistently focused on cutting-edge breakthroughs in LiFePO₄ technology and on addressing real user needs, building a smart energy storage ecosystem that covers all application scenarios. Armed with 70+ core patents, logistics coverage across 100+ countries, and a 40-warehouse global network, LiTime has already served more than 3.5 million users worldwide. The company backs its products with industry-leading support: a 30-day price guarantee, 7-day free returns, 5-year warranty, 24/7 expert service, and 2–5 day shipping — securing its position as the No.1 online lithium battery brand in RV and marine sectors across global markets. Over 3.5 Million Users Strong, LiTime Is Pioneering the Future of Sustainable Energy Since its founding, LiTime has been driven by a clear mission: MAKE ENERGY AFFORDABLE FOR EVERYONE. Today, LiTime's solutions power an extensive range of applications — from RV camping, marine, and golf carts to micromobility，off-grid, home energy storage, agricultural automation and security monitoring — helping to accelerate global adoption of renewable energy. 'Every product we design is based on genuine user feedback.' said the company's founder. |'From solving RV space limitations to building smart, connected energy systems, we design for real-world scenarios. That's how we've earned the trust of over 3.5 million users.'Continuing to grow its all-scenario energy ecosystem, LiTime remains true to its vision: 'Powering Outdoor Adventures for Generations.' LiTime Unveils Three Breakthroughs, Redefining the Limits of Lithium Power ■ Mini Series Breaks New Ground in Compact Energy Storage Back in 2019, LiTime introduced the 12V 100Ah Mini to solve a critical challenge: delivering reliable power in tight spaces like trailers and small cabins. Over the years, the company has relentlessly refined its approach to lightweight engineering and high energy density, resulting in advanced solutions like the 12V 320Ah Mini Smart Battery — a compact powerhouse with a gravimetric energy density 3.8 times greater than conventional Group 31 lead-acid models — and several other cutting-edge designs. Limited-Time LiTime Day Deal: 12V 320Ah Mini Smart Battery $699.99 (regularly $929.99), 24% OFF. ■ TM Series Secures Top Spot in Marine Power Solutions Engineered specifically for electric boats and fishing vessels, LiTime's Trolling Motor Series has earned a solid reputation among anglers and outdoor enthusiasts alike. With twice the runtime efficiency of comparable lead-acid batteries and outstanding corrosion protection, it delivers reliable, all-day power on the water. Fishing content creator FishingProTV put it to the test and was impressed:'Ran my trolling motor all day. Still 60% left!' LiTime Day Hot Deal: 12V 100Ah OBM Smart Battery $319.99 (regularly $399.99), 20% OFF. ■ T5.0 Smart ComFlex System Reimagines How Energy is Managed Developed in-house by LiTime, the T5.0 Smart ComFlex System is the first'Talking LiFePO4 Battery' designed for RV and marine energy use. It seamlessly integrates with third-party platforms like Victron, removing technical barriers and delivering true plug-and-play performance. With no complex configuration required, users can now: l Monitor battery health down to the cell level and optimize charging strategies in real time l Enjoy a plug-and-play setup with centralized control via a single screen l Enjoy affordable, intelligent connectivity with premium functionality Launch Price for LiTime Day: 12V 100Ah Smart ComFlex Battery $339.99 (regularly $429.99), 20% OFF. LiTime Expands Its All-Scenario Energy Ecosystem with Four Real-World SolutionsRVs: Travel Further with Reliable Power 12V 165Ah Smart Battery – $389.99 (Was $509.99), Save 23% LiTime specializes in end-to-end energy solutions for RV owners, offering everything from smart lithium batteries and 2000W pure sine wave inverters to high-efficiency MPPT controllers and a full range of charging accessories. Its complete, plug-and-play system — from storage to power delivery — has already supported more than 80,000 users on the road. At the center of this ecosystem is the all-new 12V 165Ah Smart Battery, a flagship model that delivers 2112Wh of power — a 65% increase in capacity within the standard Group 31 footprint — making it ideal for users demanding more energy without sacrificing All-Day Power for Every Cast 12V 100Ah TM Bluetooth Battery Bonus Deal (Aug. 18–30): Grab it at a surprise low of $254.99 (was $379.99) LiTime offers versatile battery solutions tailored to the needs of both recreational and professional boaters. From engine starting and trolling motors to fish finders and onboard power, its systems are built to support extended outings — making LiTime a top choice among anglers and sailors alike. The standout 12V 100Ah TM Bluetooth Battery is engineered for harsh marine conditions, with a peak output of 500A (1 second) that pairs perfectly with 30–70 lb thrust motors. It's also 83% lighter and 50% more compact than traditional lead-acid batteries, delivering a noticeable boost in speed and maneuverability on the Carts: Built to Conquer Every Terrain 48V 100Ah Bluetooth Battery Kit (Includes Bracket + Monitor) Bonus Deal (Aug. 12–30): Grab it at a surprise low of $999.99 (was $1,649.99) LiTime's golf cart power systems are built around three core values: energy efficiency, smart control, and modular design. The lineup includes GC2-style parallel battery packs and 51.2V 60Ah/100Ah lithium batteries, offering flexible solutions for a wide range of vehicle types. With CAN-enabled auto-parallel networking and support for centralized monitoring of up to 8 batteries via an external display, users can easily manage and shut down their entire system with one interface. Whether tackling rugged terrain or harsh weather, LiTime's system delivers stable, intelligent power in every Energy Storages: Power Through Any Outage 48V (51.2V) 100Ah ComFlex Edition Battery – $1,199.99 (Was $1,869.99), Save 35% As extreme weather events become more common across North America, LiTime has introduced a fully integrated off-grid home energy solution. Combining an inverter, MPPT charge controller, AC/DC charging modules, and a smart battery management system, the setup is designed to save space, reduce wiring complexity, and support four versatile charging modes — ensuring uninterrupted 24/7 power in any condition. At the heart of the system is the 48V 100Ah ComFlex Edition, a stackable lithium battery that supports up to 16 units in parallel. It works seamlessly with leading inverter brands like Victron, Growatt, and DEYE, delivering a flexible and future-proof energy backup for modern homes. LiTime Day Global Celebration :Limited-Time Deals & Exclusive Member RewardsTo celebrate 16 years of innovation and customer trust, LiTime Day is back — running from August 11–27, 2025 (PDT) — packed with exclusive perks, rewards, and surprises you won't want to miss! Ø Member-Only Rewards Turn points into instant savings: 1 point = 5% OFF sitewide Earn double points on all purchases during the event Score 500 bonus points by sharing the event page on Facebook Ø Limited-Time Deal Zone Unbeatable offers, updated throughout the event (offers cannot be combined) l 8% OFF all accessories l Tiered instant savings: • Spend $400 → Save 5% • Spend $800 → Save 6% • Spend $2000 → Save 8% Ø 100% Win Spin-the-Wheel Giveaway l Subscribe to the LiTime newsletter to get 1 spin + a 5% discount code l Win guaranteed prizes including discount coupons, free accessories, and more Ready to power up your gear and your savings? The LiTime Day celebration is on — and it's global. About LiTime LiTime is a premium brand specializing in lithium iron phosphate (LiFePO₄) battery technologies. With 16 years of expertise in the new energy storage industry, the company is committed to delivering safe, intelligent, and sustainable energy solutions to a global user base across RV, marine, solar, and off-grid applications. Guided by its brand philosophy, Life & Discovery, LiTime combines strong R&D capabilities, rigorous production standards, and top-tier service to meet evolving market needs. To date, LiTime's advanced battery technology has earned over 380 product certifications worldwide. By reducing the global carbon footprint and transforming the future of energy systems, LiTime is trusted by both professionals and adventurers to power tomorrow's clean energy journeys — Powering Outdoor Adventures for Generations. Learn More Company: LiTime USA/Germany/Japan Visit： Contact: marketing@ Subscribe: Crush Chen LiTime marketing at in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
