Nvidia and AMD's Strategic Revenue-Sharing Deal with US on China Chip Sales
Nvidia and AMD have agreed to share 15% of their revenue from chip sales in China with the US government as part of a deal to resume selling advanced chips to China. This arrangement is part of efforts to maintain the US lead in AI technology amid global competition.
Nvidia and AMD will share 15% of their Chinese chip sales revenues with the US government, according to an official familiar with the arrangement. This deal allows them to continue selling AI development chips to China, a decision halted by the Trump administration earlier this year.
The agreement, covered by the Financial Times, is a condition for export licenses enabling chip sales to China's competitive and expansive tech market. Nvidia expressed its commitment to adhering to US policy while asserting the importance of competing globally.
Challenged by AI technology races between global powers, the USA's restrictions on advanced chip sales to China spur debate. Advocates argue for slowing China's capabilities, while critics warn that regulatory gaps might fuel further innovation elsewhere. The rapid rise of China's DeepSeek AI chatbot underscores this transformative landscape.
(With inputs from agencies.)
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