In sum – what to know:
– Nvidia and AMD will reportedly have to pay 15% of their revenues from China AI chip sales to the U.S. government, in exchange for export licenses to be able to sell into the Chinese market.
– Raise revenues: The deal could raise $2 billion annually for the U.S. government.
– Uneven playing field: The news raises expectations that more large tech companies will strike such deals with the Trump administration, while smaller companies will remain subject to broader tariffs and export bans.
In a highly unusual arrangement for the United States, the Trump administration is expected to begin taking payments of 15% of the revenues that chip companies Nvidia and Advanced Micro Devices (AMD) generate from artificial intelligence chip sales to China, in exchange fo