Nvidia & AMD Agree to Fund US Govt in Exchange for Chinese Chip Sales
Nvidia and AMD have agreed to contribute 15% of their revenues from chip sales in China to the US government. This unprecedented arrangement allows the companies to continue operating in the Chinese market despite stringent export controls from the US government. The agreement comes after Nvidia CEO Jensen Huang met with President Donald Trump, following which H20 export licences were issued. Nvidia acknowledged the arrangement, stating they follow rules set by the US government for their participation in worldwide markets. AMD's MI308 chip export licences were also reportedly granted around the same time. The commerce department has been instructed to halt new export controls on China to avoid straining relations with Beijing. Nvidia customised the H20 chip for the Chinese market after President Joe Biden imposed stringent export controls on more advanced chips. The US government has yet to decide how to utilise the funds generated from this agreement. The ongoing debate in Washington regarding export control policies for chips coincides with US-China trade discussions.
