The U.S. government has approved a new revenue-sharing agreement that allows Nvidia and AMD to sell artificial intelligence chips to China, with both companies required to remit 15% of their sales revenue to the United States. This decision comes as part of a broader strategy to manage the complex balance between national security concerns and economic interests in the global technology race. The administration has issued export licenses for AI chips to China, citing the need for a balanced approach that allows for trade while addressing potential security risks.
The deal is seen as a significant move in the ongoing trade tensions between the U.S. and China, where both countries have been competing for dominance in the high-tech sector. By allowing the sale of AI chips, the U.S. government acknowledges the strategic importance of these technologies while ensuring that a portion of the revenue is returned to the United States. This approach is intended to support domestic innovation and economic growth without compromising national security.
Nvidia and AMD, two of the leading manufacturers of AI chips, have expressed their commitment to complying with the new terms of the agreement. The companies have not yet provided details on the exact mechanisms for revenue collection, but it is expected that the arrangement will be structured to ensure compliance with U.S. regulations. This development marks a shift in the U.S. strategy on technology exports, indicating a more flexible approach to managing international trade and security issues.