White House says 15% tax on Nvidia and AMD for China sales under works, hints future expansion
Nvidia
and AMD's chip sales to China. US President Donald Trump confirmed this week that he negotiated the deal, which grants Nvidia and AMD export licenses for their China-specific AI chips in exchange for a percentage of their revenue. The
White House
also said that similar deals may be extended to other companies in the future.
White House spokesperson Karoline Leavitt confirmed that the arrangement currently applies to just the two chipmakers.
'Right now it stands with these two companies. Perhaps it could expand in the future to other companies,' she said.
Leavitt added that the 'legality of it, the mechanics of it, is still being ironed out by the Department of Commerce,' suggesting that the implementation of the unprecedented deal is far from complete.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Live Update: The Strategy Uses By Successful Intraday Trader
TradeWise
Learn More
Undo
Donald Trump calls Nvidia H20 chips 'Obsolete'
The development comes days after it was reported that Trump told Nvidia and AMD that they need to pay 15% of the revenue to the government.
"I said, 'If I'm going to do that, I want you to pay us as a country something, because I'm giving you a release'," Trump stated.
Nvidia, for its part, released a statement saying, "We follow rules the U.S. government sets for our participation in worldwide markets."
The agreement has drawn criticism from trade lawyers and experts who have questioned its legality, citing existing laws that regulate how the government can charge fees for export licenses.
The chips in question, including Nvidia's H20 and AMD's equivalents, are specifically designed to comply with US export regulations that were put in place in 2023 to limit China's access to advanced AI technology. The U.S. government is concerned that these powerful chips could be used by China to advance its military capabilities.
How and Why Trump's New Tariffs Will Not Make Your iPhone More Expensive
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
3 minutes ago
- Mint
Hedge funds shift bets to double down on Big Tech amid AI boom
By Anirban Sen and Carolina Mandl NEW YORK, Aug 14 (Reuters) - Wall Street's largest hedge funds, Bridgewater Associates, Tiger Global Management and Discovery Capital, increased their exposure to Big Tech in the second quarter amid a generational boom in the growth of artificial intelligence. During the June quarter, hedge funds cut their exposure to laggards in industries like aerospace and defense, and consumer and retail, as part of a broader move back to momentum investing. It marks a big shift from earlier this year when bets on Big Tech had soured for top money managers due to tariff-fueled volatility in financial markets, with investor concerns around rising inflation and fears of a bubble in AI triggering a sell-off in "Magnificent Seven" stocks. Since then, tech stocks have staged a big comeback. The S&P 500 is up 10% so far this year, buoyed largely by the largest tech companies, which account for nearly a third of the combined market cap of companies on the index. Outside technology, some hedge funds, such as Lone Pine and Discovery, also bet on UnitedHealth Group. Berkshire Hathaway and Michael Burry's Scion Asset Management also unveiled bets on the insurer, while Soros Fund Management boosted an existing position. Shares in UnitedHealth are down 46% this year, as the company faces rising costs, a U.S. Department of Justice probe, a cyberattack and the shooting of former top executive Brian Thompson last December. The fund's positions were revealed in quarterly securities filings known as 13Fs. While backward-looking, these filings typically reveal what funds owned on the last day of the quarter and are one of the few ways hedge funds and other institutional investors have to declare their positions. Below are the details of the changes in the holdings of the top hedge funds: Bridgewater Associates added more shares in Nvidia, Alphabet and Microsoft in the second quarter. The macro hedge fund founded by Ray Dalio more than doubled its bets in Nvidia. It ended June with 7.23 million shares in the chipmaker, or 154.5% more than it had at the end of March. Nvidia was Bridgewater's biggest bet in a single stock, totaling $1.14 billion. Its holdings in Alphabet and Microsoft went up by 84.1% and 111.9%, respectively, amounting to $987 million and $853 million. Other AI-related stocks added were Broadcom ( 102.7%), to 317.8 million shares, or $317 million, and Palo Alto Networks ( 117%), to 313.8 million, or $314 million. Discovery Capital, whose founder Rob Citrone has recently been bullish on Mexico's America Movil due to its exposure to Latin America, doubled its stake in the wireless provider during the second quarter. For the quarter ended June 30, the fund amassed another 2.65 million shares, valuing its current holding in America Movil at about $95 million. Citrone's hedge fund, which generated a 52% windfall on its investments last year, has increased its exposure to Latin America as part of a strategy to diversify from U.S. holdings. During the quarter, Discovery increased its holdings in Big Tech, as it more than doubled its stake in Meta Platforms , the parent company of Facebook, while also betting on booming demand for AI as it took a new position in Nvidia-backed cloud provider CoreWeave. The hedge fund also increased its position in UnitedHealth by 13%. Tiger Global Management bought more stocks in some Magnificent Seven companies in the second quarter, including Alphabet, Nvidia, Microsoft and Meta, its 13Fs showed. Chase Coleman's hedge fund added roughly 4 million shares of Amazon and ended June with roughly 10 million shares, worth $2.34 billion. The fund also increased its bets in smaller AI-players. It added over 800,000 shares in chip-making equipment supplier Lam Research Corp, ending June with 5.26 million shares, valued at $512 million. Many changes in Philippe Laffont's Coatue Management portfolio were also around AI-related stocks. It unveiled new positions in both Arm Holdings and Oracle, adding stakes worth roughly $750 million and $843 million, respectively. Both companies have boosted AI-related business initiatives. Coatue also increased its holdings in Nvidia-backed CoreWeave, adding 3.39 million shares in the second quarter, with its stake in the company worth $2.9 billion. Lone Pine Capital took a new position in UnitedHealth Group, buying up 1.69 million shares worth about $528 million during the June quarter. (Reporting by Carolina Mandl and Anirban Sen in New York; Editing by Leslie Adler)
Economic Times
3 minutes ago
- Economic Times
Border patrol conducts immigration operation outside Gov. Newsom press conference in downtown Los Angeles
Governor Gavin Newsom spoke in downtown Los Angeles on Thursday at the Japanese American National Museum. He was promoting his plan to change California's congressional districts in response to redistricting by Republican-controlled Texas. About 100 federal agents gathered just outside in the Little Tokyo area, likely for an immigration operation. Newsom's office posted on social media in a style similar to Donald Trump, 'BORDER PATROL HAS SHOWED UP AT OUR BIG BEAUTIFUL PRESS CONFERENCE! WE WILL NOT BE INTIMIDATED!', as reported by KTLA 5. The Los Angeles Police Department warned of traffic disruptions due to the large federal presence. LA Mayor Karen Bass said the agents' presence 'was no coincidence' and called it 'unbelievably disrespectful' and 'provocative'. Bass added, 'They decided they were going to come and thumb their nose in front of the governor's face…They are talking about disorder in Los Angeles, and they are the source of the disorder in Los Angeles right now'. DHS Assistant Secretary Tricia McLaughlin said the Border Patrol patrols all areas of Los Angeles every day with over 40 teams to keep LA safe, and the operation was not about targeting Newsom. McLaughlin said, 'Our law enforcement operations are about enforcing the law—not about Gavin Newsom', as per the KTLA 5 agents detained at least one person during the operation in downtown Los Angeles. The arrested person was a strawberry vendor outside the Democracy Center in Little Tokyo. Border Patrol Sector Commander Gregory K. Bovino said the man was in the country illegally, as mentioned by NBC Los Angeles. Video showed armed and masked U.S. Border Patrol agents walked the man with his hands restrained behind his back toward federal buildings, including a detention center. Newsom mentioned the Border Patrol operation during his speech, saying: 'Right outside, at this exact moment, dozens and dozens of ice agents…Donald Trump, you think it's coincidental? Donald Trump's minions, (border czar) Tom Homan, decided this was a location they'd advance'ALSO READ: Nike's Phil Knight shocks nation with $2 billion donation to Oregon Cancer Center — largest ever Newsom added, 'Donald Trump, you have poked the bear. We will punch back'. Senators Alex Padilla and Adam Schiff also spoke at the event inside the museum while dozens of agents were outside. Padilla, who was forcibly removed earlier this year from a DHS news conference, said outside: 'Trump, it's all about spectacle…Guess what? California is not going to be intimidated', as stated by the report. In addition to Newsom's speech, a midday ceremony was held nearby at the Japanese American Cultural & Community Center honoring three Japanese American brothers who served in World War II while their family was in forced internment under a WWII-era executive Bass emphasized again: 'There is no way this was a coincidence…This is a complete provocation. This has nothing to do with safety. This is the exact opposite of keeping our city safe'. Bovino responded about the Border Patrol location, saying: 'Breaking the law is not coincidental…Breaking the law is breaking the law', as mentioned by reports. Immigration enforcement operations in Los Angeles and Southern California have been happening regularly since early June. These operations are part of President Trump's campaign promise to carry out a mass deportation plan. The administration focuses on arrests of undocumented immigrants with violent crime convictions, but also includes asylum seekers, visa overstays, and migrants waiting for immigration court, as per the report by NBC Los Angeles. Through August 1, nearly 56,600 migrants were taken into ICE detention since the start of Trump's second those detained, 29% had criminal convictions, 24.7% had pending criminal charges, 46.8% were 'other immigration violators,' and 11.9% were fast-tracked for deportation, as reported by NBC News. Q1. Why were federal agents outside Gov. Newsom's press conference in LA? About 100 federal agents were conducting an immigration enforcement operation in Little Tokyo, not targeting Newsom personally. Q2. Who was arrested during the Border Patrol operation outside Newsom's event? A strawberry vendor was detained for being in the U.S. illegally, according to Border Patrol officials.
Time of India
17 minutes ago
- Time of India
Will reconsider holding PU polls if blockade continues, says DSW
1 2 Chandigarh: A deadlock over police presence inside Panjab University is still on, with no breakthrough in sight. A day after Wednesday's confrontation over police checkpoints, the blockade has not only persisted, but has now extended. On Thursday night, the blockade was extended to just before the T-point from Gate No 2, forcing anyone entering through that gate to turn left into the residential area to reach the inner campus. The earlier point, closer to the Administrative Block, were also blocked by protesters, effectively restricting movement in the sector of campus that houses several academic departments. Despite rain throughout the day, students turned up, some carrying tricolour in hand as the eve of Independence Day added symbolic colour to the sit-in. Many stayed through passing showers, holding ground at the barricades. Independence Day celebrations are scheduled for Friday morning at the Parade Ground, located barely a few minutes' walk from the main protest site. Protesters themselves held a meeting Thursday evening to decide their course of action for the event. As the Parade Ground is readied for flag-hoisting and cultural programmes, the approach roads remain occupied by placards and slogans. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo If the deadlock holds, Panjab University's 78th Independence Day will open to two contrasting scenes — a formal ceremony honouring the nation's freedom and a swelling student blockade a few hundred metres away. Meanwhile, in a significant development, the Dean of Student Welfare said the ongoing blockade could force the university to speak to Chandigarh Police and reconsider holding student elections, as polls cannot be conducted without police deployment this time. An 11.30 am meeting he called to resolve the standoff was boycotted by all student parties. He said the police presence was meant solely for students' security, but protesters were creating indiscipline. "If we keep security, they complain; and if something unfortunate happens, we will be blamed," he remarked. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area. Get the latest lifestyle updates on Times of India, along with Happy Independence Day wishes , messages , and quotes !
