Trump Administration Demands 15 Percent Cut from Nvidia and AMD’s AI Chip Sales to China
The Trump administration has ordered Nvidia and AMD to remit a 15 percent cut of their revenue from AI chip sales to China, potentially generating $2 billion annually for the federal government, reports 24brussels.
Nvidia’s CEO Jensen Huang reached an agreement with President Donald Trump shortly before the Commerce Department issued licenses allowing both companies to sell AI chips. The authorized shipments include Nvidia’s H20 and AMD’s MI308, which are modified versions of their original AI-focused GPUs that comply with US export regulations.
This move follows restrictions imposed by the Trump administration in April on AI chip sales to China. Both Nvidia and AMD announced last month their readiness to resume shipments upon receiving the necessary licenses. However, Nvidia’s H20 chip faced scrutiny last week as the Chinese government raised concerns over the potential for a government “backdoor” in the hardware.
The arrangement could be seen as a significant financial maneuver by the Trump administration, reflecting its eclectic approach to business dealings, including threats of tariffs and unusual fundraising methods. Earlier this year, Trump had even considered dismantling Nvidia unless the company made strategic adjustments favorable to US interests.
Throughout his presidency, Trump has continued to actively engage in corporate affairs under the guise of national security. Examples include his proposed ownership structure for TikTok and interventions with Intel’s leadership over its China links, highlighting a contentious intersection of politics, business, and international relations.
