NVIDIA and AMD give US 15% of Chinese chip turnover to lift export ban

The race for artificial intelligence (AI) is in full swing. The United States wants to retain and even increase its lead in this billion -dollar industry. That is why the country has imposed solid export restrictions in the direction of China in recent years.

Donald Trump now presents a remarkable deal that should help both American chip manufacturers and the government.

AI chips in the heart of geopolitical struggle

Chip giants Nvidia and AMD have reached an agreement to pay 15 percent of their turnover from Chinese AI chip sales to the US government. In exchange, they get export licenses to keep selling their advanced AI chips in China.

It specifically concerns two models: NVIDIA’s H20 and AMD’s MI308. These chips were tailor-made for the Chinese market, after the Biden government introduced stricter export restrictions in 2023. When Trump became president again in April of this year, he moved in existing export permits.

Washington fears that the chips can be used not only in industrial applications, but also in military projects, such as autonomous weapons and advanced surveillance.

Fear of a new ‘5G moment’

NVIDIA CEO Jensen Huang held intensive consultations with American policy makers for months and even spoke to Trump personally. His message: the US may not experience a second ‘5G moment’, where China takes the lead technologically.

Despite criticism from Beijing, many analysts see the deal as a smart move to secure billions in turnover.

Panic companies

According to analysts from Kobeissi, the agreement is “unprecedented”. It is the first time that American companies immediately give up a percentage of foreign turnover in exchange for commercial rights.

Companies fear that this will be the new normal. From now on access to the Chinese market can depend on direct payments or investments that the White House demands.

For example, Apple previously announced an investment of 600 billion dollars in the US after threats on an import tax of 25 percent on iPhones. According to Kobeissi, chip manufacturer Intel could now be the next.