Nvidia & AMD's Controversial Deal: 15% Revenue Share with U.S. Sparks Debate

Nvidia and AMD have reached an agreement to allocate 15% of their revenue from the sale of advanced computer chips to China to the U.S. government. This unusual arrangement, first reported by the Financial Times, has drawn attention as it unfolds under the administration of former President Donald Trump.

Initially, the Trump administration had halted sales of H20 chips to China due to national security concerns. However, a recent announcement by Nvidia revealed that Washington would allow the resumption of these sales, prompting discussions about security and economic implications.

Critics of this agreement argue it may compromise national security by prioritizing revenue over protective measures. A former adviser suggested this move trades national security for financial benefits. Nvidia and AMD collectively generated significant revenue from China, highlighting the economic stakes in this decision.

(With inputs from agencies.)