Kevin O'Leary Says Nvidia, AMD Still Win Under Trump China Plan Despite 15% 'Form Of Blackmail' Levy
The controversial deal allows both companies to sell their advanced AI chips, the H20 and MI308, to the Chinese market while handing over 15% of the proceeds to the U.S. government. Many commentators expressed national security concerns in reaction to the agreement as both countries race to develop artificial intelligence.
O'Leary, a contributor for CNN and supporter of Trump, appeared on the network on Monday to discuss the deal.
The Shark Tank star and conservative commentator says the practice of taxing specific companies feels like 'funky chicken,' but will benefit American companies in the long run.
'We want all of these countries using American technology and developing on the American tech stack,' O'Leary said. 'We do not want to give Huawei a chance to catch up to what's going on with firmware and software development — that is crucial.'
O'Leary went so far as to say the government should even ship semiconductor chips to North Korea or other adversaries of the U.S. because it keeps them 'under control of the American tech stack' of American software.
The Canadian entrepreneur stated that the 15% cut imposed by the U.S. is no different from a tariff or 'form of blackmail' that companies will pay, regardless, due to an incremental increase in cash flows.
Others are less approving of Trump's deal.
Economist Peter Schiff likened the arrangement to a 'federal shakedown' taxing revenue instead of profits. An article in Fortune noted the deal could be unconstitutional as Article 1, Section 9, of the U.S. Constitution forbids export taxes.
New York Times contributing writer Steven Rattner said the deal poses significant national security concerns in a post on X.
'This is wrong in so many ways. It's absurd from a national security standpoint and terrible economic policy,' Rattner wrote. 'Unpredictable, invasive government intervention is the antithesis of what makes America's economy the best in the world.'
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