Nvidia, AMD agree to pay 15% of Chinese AI chip revenues to US for export licenses
(Bloomberg) – Nvidia Corp. and Advanced Micro Devices Inc., China AI chips sales of 15% of their revenue, both US companies and Beijing to secure an unusual export licenses to secure the US government agreed to pay.
According to a person who knows the issue, NVIDIA plans to share 15% of the revenue from the sales of the H20 AI accelerator in China. AMD, the same share of the MI308 revenues, the person asked for anonymity to discuss internal negotiations.
The regulation reflects US President Donald Trump’s effort to make a financial payment for the United States in exchange for trade concessions. His management showed that Apple Inc. was willing to relax the trade conditions such as tariffs in exchange for a giant investment in the United States, such as the promise of spending $ 600 billion on domestic production. However, such a narrow, distinguished export tax has very little precedent in modern institutional history.
Beijing, which has grown to the idea of Chinese companies that deploy the H20, is unlikely to warm up to the idea of chip tax. Yuyuantiian, a social media account connected to the Chinese central television, operated by the state, which regularly pointed out Pejing’s thoughts on trade, hit the default vulnerabilities and inefficiency of the chip on Sunday.
“This appearing Quid Pro Quo is not seen from the export control perspective, the DC -based Security Center and developing technology researcher Jacob Feldgoise said.
“It will probably weaken the position of the US,” he added, while negotiating with the allies to implement complementary controls. “Allies may not believe in US policy makers if they want to exchange the same national security concerns for economic privileges – from US companies or foreign governments.”
A NVIDIA spokesman said the company has followed US export rules and hopes that the rules will allow companies to compete in China, although they did not send H20 chips to China for months. AMD did not respond immediately to the request for comment.
The Financial Times has previously reported development. Days after the trade department of the trade department of Nvidia CEO Jensen Huang met Trump last week, he watched a separate report that he started to publish H20 licenses last week.
Huang, China will only slow down the spread of American technology and Huawei Technologies Co.
Hebe Chen, an analyst with Vantage markets in Melbourne, said, “Strategic bargaining chip, birmek tightening Washington’s holding a critical technology field during trade negotiations with China. “Over time, this obstacle for the plugs entering China will probably deterd Nvidia and AMD in the world’s largest chip in the importer market without deeper expansion and will provide a clear advantage for local Chinese manufacturers to capture the market share and accelerate domestic semiconductor innovation.”
If Washington continues to tax, it should make some capital into the US – but not relatively a tremendous amount. Both Nvidia and AMD said that it would take time to support the production of Chinese products-even if the levels of Sipariş return to previous levels, this is uncertain.
Nvidia earned $ 4.6 billion in revenue from the H20 in the financial quarter that ended on April 27 – days later, days after the AI accelerator was sent to China.
He also said that he could not send $ 2.5 billion H20 H20 China income at that time due to new rules. This means that it will be more than $ 7 billion in H20 sales to China during the period. If it can return to this level, it will continue to receive a quarter of a billion dollars from the US government agreement.
Morgan Stanley estimates that AMD can generate $ 3 billion to $ 5 billion 2025 income if the restrictions are removed. Chinese alternatives, such as Huawei’s Ascend chips, now make up 20% to 30% of domestic demand.
“The US government needs money with its vulnerabilities and enthusiasm to collect tariffs,” he said.
“However, the complication may be a negotiating tactic to emphasize that the country is not ‘difficult’ for the US receipts of the country’s accusations against H20 chips containing the rear doors of China.”
