Nvidia and AMD have agreed to a controversial deal with the US government, where both companies will pay 15 percent of sales revenues from their respective AI chips sold in China. This arrangement aims to secure export licenses needed for their products. The deal follows the reversal of a ban on Nvidia's H20 chips. Trade experts express deep concern about the precedent being set, suggesting that it may compromise US national security by enabling companies to circumvent export controls through monetary payments.
Christopher Padilla, the former head of the US Commerce Department's International Trade Administration, called the agreement astonishing. He expressed concerns that allowing companies to buy their way past export controls could indicate the nation is in dangerous waters. He described it as a mix of bribery and blackmail that should be avoided to protect US national security.
Nvidia will share 15 percent of revenues from sales of its H20 AI chip, while AMD will pay the same percentage on MI308 chip revenues as part of a deal with the US government.
Collection
[
|
...
]