The United States Semacist veteran NVidia and the Advanced Micro devices (AMD) will pay 15% revenue from the sale of Artificial Intelligence (AI) chips to the US government, which Donald Trump has allegedly braved under an unusual deal.
The agreement was reversed for the first export ban, which resumed the sale of AI chips to China by NVIDIA and AMD.
According to the report financial Times, BloombergAnd the new York TimesNvidia CEO Jensen Huang met with Trump at the White House last week and agreed to give his administration a share of the company’s revenue.
AI chip export license approved
The US Department of Commerce started issuing licenses for sale of NVIDIA H20 chip to China on Friday.
“We follow the rules set by the US government for our participation in markets around the world,” an NVidia spokesman person made a comment when asked about the deal.
The AMD, which produces an AI chip called Mi308, did not respond to a Reuters’ request for comments.
China represents an important market for both companies, in which joint sales are estimated to $ 25 billion (€ 23 billion).
The Trump administration insisted that chips are less advanced
Critics say that the step pose a national security risk, arguing that it can accelerate China’s AI capabilities.
“If this reporting is accurate, it suggests that the administration is removing national security security for the Treasury,” said Alsadier Philips-Robins, who served as consultants in commerce during the administration of former President Joe Biden.
“It’s wild,” said Gartz, a senior partner of the Center for a new American security for an independent think tank in Washington, DC.
“Ether selling H20 chips to China is a national security risk, in which we should not do to start it, or it is not a national security risk, in which case, why are we putting this additional punishment on sale?”
The Trump administration said that chips are less advanced than those sold to the Allies and argue that the deal strengthens American technical dominance.
Meanwhile, China has increased security concerns over NVIDIA’s H20 AI chips, claiming that they may have backdoor.
Cyberspace Watchdog of China called Nvidia at its H20 chips to explain the risk of the potential back door in its H20 chips. Nvidia denied claims, emphasizing its products and remote access is not allowed.
Edited by: Carl Sexton
