Nvidia and AMD ransom to the US government to enter the Chinese market

In an unprecedented move, two giants of artificial intelligence chips, Nvidia And AMDThey have agreed to pay 5 % of the revenue from the sale of their specific products to China to the US government. The agreement has been the Trump administration’s condition for issuing advanced chips to the Chinese market.

The agreement includes the Nvidia H20 and Mi308 chip; Products that were specifically designed to circumvent the export restrictions of the Biden government last year. Exports of these chips to China were to be banned earlier, but after meeting Nvidia CEO Jansen Huang with Trump, the licensing route was opened.

Analysts have estimated that if there were no restrictions, only about 1.5 million H20 chips were sold to China in the year, equivalent to $ 5 billion in revenue. Now, with the implementation of this agreement, a significant portion of this figure will go directly to the US Treasury.

Critics of the decision have warned that these chips can help develop Chinese artificial intelligence capabilities, even in the military, and actually change technology balance to Washington’s loss. However, Nvidia described the claim as “baseless” and insisted that export laws are required to be on the world market.

The agreement has been reached with Washington and Beijing’s sensitive trade negotiations, and some observers believe that the Trump administration is trying to pave the way to meet with Shi Jinping by reducing technological tensions.