NEW YORK (AP) \u2014 Nvidia and AMD agreed to share 15% of their revenues from chip sales to China with the U.S. government, a U.S. government official has confirmed.<\/p>\n\n\n\n
President Donald Trump\u2019s administration halted the sale of advanced computer chips to China back in April over national security concerns, but Nvidia and AMD revealed in July<\/a> that Washington would allow them to resume sales of the H20 and MI308 chips, which are used in artificial intelligence development.<\/p>\n\n\n\n The official, who insisted on anonymity to discuss a policy not yet formally announced, confirmed to The Associated Press the revenue sharing terms of the deal, and said the broad strokes of the initial report by The Financial Times<\/a> were accurate.<\/p>\n\n\n\n The FT reports that Nvidia and AMD agreed to the financial arrangement as a condition for obtaining export license to resume sales to China.<\/p>\n\n\n\n Nvidia did not comment about the specific details of the agreement or its quid pro quo nature, but said they would adhere to the export rules laid out by the administration.<\/p>\n\n\n\n \u201cWe follow rules the U.S. government sets for our participation in worldwide markets. While we haven\u2019t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,\u201d Nvidia wrote in a statement to the AP. \u201cAmerica cannot repeat 5G and lose telecommunication leadership. America\u2019s AI tech stack can be the world\u2019s standard if we race.\u201d<\/p>\n\n\n\n AMD did not immediately reply to a request for comment.<\/p>\n\n\n\n The top Democrat on a House panel focusing on competition with China raised concerns over the reported agreement, calling it \u201ca dangerous misuse of export controls that undermines our national security.\u201d<\/p>\n\n\n\n Rep. Raja Krishnamoorthi, the ranking member of the House Select Committee on China, said he would seek answers about the legal basis for this arrangement and demand full transparency from the administration.<\/p>\n\n\n\n \u201cOur export control regime must be based on genuine security considerations, not creative taxation schemes disguised as national security policy,\u201d he said. \u201cChip export controls aren\u2019t bargaining chips, and they\u2019re not casino chips either. We shouldn\u2019t be gambling with our national security to raise revenue.\u201d<\/p>\n\n\n\n Back in July, Nvidia argued that tight export controls around their chip sales would cost the company an extra $5.5 billion. They\u2019ve argued that such limits hinder U.S. competition in a sector in one of the world\u2019s largest markets for technology, and have also warned that U.S. export controls could end up pushing other countries toward China\u2019s AI technology.<\/p>\n\n\n\n Commerce Secretary Howard Lutnick told CNBC<\/a> in July that the renewed sale of Nvidia\u2019s chips in China was linked to a trade agreement<\/a> made between the two countries on rare earth magnets.<\/p>\n\n\n\n Restrictions on sales of advanced chips to China have been central to the AI race between the world\u2019s two largest economic powers, but such controls are also controversial. Proponents argue that these restrictions are necessary to slow China down enough to allow U.S. companies to keep their lead. Meanwhile, opponents say the export controls have loopholes \u2014 and could still spur innovation. The emergence of China\u2019s DeepSeek<\/a> AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.<\/p>\n","protected":false},"excerpt":{"rendered":" NEW YORK (AP) \u2014 Nvidia and AMD agreed to share 15% of t […]<\/p>\n","protected":false},"author":1,"featured_media":3878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/www.viewworld.org\/index.php?rest_route=\/wp\/v2\/posts\/3877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.viewworld.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.viewworld.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.viewworld.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.viewworld.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3877"}],"version-history":[{"count":1,"href":"https:\/\/www.viewworld.org\/index.php?rest_route=\/wp\/v2\/posts\/3877\/revisions"}],"predecessor-version":[{"id":3879,"href":"https:\/\/www.viewworld.org\/index.php?rest_route=\/wp\/v2\/posts\/3877\/revisions\/3879"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.viewworld.org\/index.php?rest_route=\/wp\/v2\/media\/3878"}],"wp:attachment":[{"href":"https:\/\/www.viewworld.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.viewworld.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.viewworld.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}