American chipmakers Nvidia and Advanced Micro Devices have agreed to give 15 percent of revenue from certain artificial intelligence chip sales in China to the U.S. government as a condition of obtaining export licenses.
The arrangement ties government permission to a revenue-sharing requirement, prompting questions about constitutionality and the purpose of export controls amid a high-stakes rivalry with China for AI computing capacity.
Newsweek contacted the White House for more information on the deal via email.
Why it Matters
The deal alters a long-standing norm that U.S. export controls serve national security ends rather than revenue generation , potentially setting a precedent for monetizing access to foreign markets and complicating the legal framework governing exports. Cri