Nvidia and AMD Explore Selling High-End AI Chips to China with US Revenue Sharing Approach

Nvidia and AMD are navigating a new landscape in the AI chip market, altering their previous narrative centered around U.S. national security. According to a report by the Financial Times, the two companies have agreed to hand over 15% of their revenue from sales of high-end AI chips to China to the U.S. government. This deal will allow them to obtain licenses necessary to continue selling their chips in the Chinese market.

The specific chips involved include Nvidia’s H20 AI chips and AMD’s MI308 chips. The U.S. government has begun issuing the required licenses for both companies, marking a significant shift in policy. Earlier this year, the Trump administration had placed restrictions on sales of certain advanced AI chips to China but lifted those restrictions after Nvidia promised substantial investments in data centers in the U.S.

Nvidia recently confirmed they hope to resume sales of the H20 AI chips, which they had designed specifically for the Chinese market, after not shipping them for several months. A spokesperson stated, “We follow rules the U.S. government sets for our participation in worldwide markets.”

The decision to restart sales has been linked to ongoing trade discussions between the U.S. and China, particularly concerning rare-earth elements essential for manufacturing various components. However, this shift has drawn criticism from national security experts and former officials, who have urged the government to reconsider its stance on sales to China.

Discover the pinnacle of WordPress auto blogging technology with AutomationTools.AI. Harnessing the power of cutting-edge AI algorithms, AutomationTools.AI emerges as the foremost solution for effortlessly curating content from RSS feeds directly to your WordPress platform. Say goodbye to manual content curation and hello to seamless automation, as this innovative tool streamlines the process, saving you time and effort. Stay ahead of the curve in content management and elevate your WordPress website with AutomationTools.AI—the ultimate choice for efficient, dynamic, and hassle-free auto blogging. Learn More