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Trump’s AI chip deal secures market access at a cost
The post Trump’s AI chip deal secures market access at a cost appeared on BitcoinEthereumNews.com. U.S. President Donald Trump has approved a deal allowing Nvidia and AMD to resume selling their advanced AI chips to China in exchange for handing 15% of the revenue from those sales to the American government. The agreement grants both companies export licenses for Nvidia’s H20 and AMD’s MI308 chips, which had previously been blocked under export controls. Nvidia said it follows the rules the U.S. government sets for global markets, noting it hasn’t shipped H20 chips to China for months. The company added that America “cannot repeat 5G and lose telecommunication leadership” and argued its AI technology could become the global standard if the country stays competitive. Trump’s deal secures market access at a cost Nvidia designed the H20 chip specifically to comply with U.S. export rules for China after earlier restrictions halted shipments. Last month, the company said it expected to get licenses to restart deliveries. In July, AMD confirmed it would resume MI308 exports to China. At the time, no conditions or revenue-sharing requirements were mentioned, and markets welcomed the potential return of billions of dollars in sales. On Monday, Nvidia and AMD shares slipped only slightly in premarket trading. Ben Barringer, global technology analyst at Quilter Cheviot, told CNBC that “85% of the revenue is better than zero,” adding that the key question is whether the companies will raise prices to offset the 15% levy. Without the licenses, the Chinese market could be left entirely to Huawei, its closest local competitor. George Chen, partner at The Asia Group, said the agreement gives both companies short-term certainty but warned that the U.S. government might demand a larger cut if sales grow. Neil Shah, partner at Counterpoint Research, called it an “indirect tariff at source,” while Daniel Newman, CEO of The Futurum Group, described it as a “tax”…
The post Trump’s AI chip deal secures market access at a cost appeared on BitcoinEthereumNews.com.
U.S. President Donald Trump has approved a deal allowing Nvidia and AMD to resume selling their advanced AI chips to China in exchange for handing 15% of the revenue from those sales to the American government. The agreement grants both companies export licenses for Nvidia’s H20 and AMD’s MI308 chips, which had previously been blocked under export controls. Nvidia said it follows the rules the U.S. government sets for global markets, noting it hasn’t shipped H20 chips to China for months. The company added that America “cannot repeat 5G and lose telecommunication leadership” and argued its AI technology could become the global standard if the country stays competitive. Trump’s deal secures market access at a cost Nvidia designed the H20 chip specifically to comply with U.S. export rules for China after earlier restrictions halted shipments. Last month, the company said it expected to get licenses to restart deliveries. In July, AMD confirmed it would resume MI308 exports to China. At the time, no conditions or revenue-sharing requirements were mentioned, and markets welcomed the potential return of billions of dollars in sales. On Monday, Nvidia and AMD shares slipped only slightly in premarket trading. Ben Barringer, global technology analyst at Quilter Cheviot, told CNBC that “85% of the revenue is better than zero,” adding that the key question is whether the companies will raise prices to offset the 15% levy. Without the licenses, the Chinese market could be left entirely to Huawei, its closest local competitor. George Chen, partner at The Asia Group, said the agreement gives both companies short-term certainty but warned that the U.S. government might demand a larger cut if sales grow. Neil Shah, partner at Counterpoint Research, called it an “indirect tariff at source,” while Daniel Newman, CEO of The Futurum Group, described it as a “tax”…
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