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Nvidia, AMD may sell high-end AI chips to China if they pay US a cut
The global AI chip race narrative used to be about U.S. national security, but apparently now it's about tariffs: Nvidia and AMD have agreed to pay the U.S. government 15% of the revenue they make from sales of high-end AI chips to China in exchange for licenses to sell to those chips in the country, the Financial Times reported, citing anonymous sources.
The Trump administration in April had restricted sales of certain high-performance AI inference chips to China, but paused the ban a couple of months later, when Nvidia promised to make up to $500 billion worth of data center investments stateside. According to U.S. Commerce Secretary Howard Lutnick, Nvidia’s change of course was related to trade discussions with China regarding rare-earth elements, which are necessary for making components, like rechargeable batteries for electric vehicles. He covered North American and European M&A, equity, regulatory news and debt markets at Reuters and Acuris Global, and has also written about travel, tourism, entertainment and books.
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