Nvidia, AMD to pay US 15% of AI chip sales to China: reports
WASHINGTON (AFP)US semiconductor giants Nvidia and Advanced Micro Devices have agreed to pay the United States government 15 percent of their revenue from selling artificial intelligence chips to China, according to media reports Sunday.Nvidia CEO Jensen Huang met with US President Donald Trump at the White House on Wednesday and agreed to give the federal government the cut from its revenues, a highly unusual arrangement in the international tech trade, according to reports in the Financial Times, Bloomberg and New York Times.According to the Financial Times, the artificial intelligence chips that are part of the agreement with the US government are Nvidia's "H20" and the "MI308" from Advanced Micro Devices (AMD).Nvidia did not deny the reported deal when approached for comment."We follow rules the US government sets for our participation in worldwide markets," a spokesperson told AFP."While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide."The company spokesperson added: "America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race."AMD did not immediately respond to inquiries for comment.Investors are betting that AI will transform the global economy, and last month Nvidia -- the world's most valuable company and a leading designer of high-end AI chips -- became the first company ever to hit $4 trillion in market value.Nvidia said last month that Washington had pledged to let the company sell its H20 chips to China.Silicon Valley-based AMD will also pay 15 percent of revenue on Chinese sales of its MI308 chips, which it was previously barred from exporting to the country.The deal could earn the US government more than $2 billion, according to the New York Times report.The move comes as the Trump administration has been imposing stiff tariffs, with goals varying from addressing US trade imbalances, wanting to reshore manufacturing, and pressuring foreign governments to change policies.
A 100 percent tariff on many semiconductor imports came into effect last week, with exceptions for tech companies that announce major investments in the US.
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