Nvidia and AMD have committed to giving the US government 15% of their profits from the sale of AI processors made in China. The Financial Times first revealed the historic agreement on Sunday. It is a component of a deal to obtain export permits for the Chinese market.
While AMD’s MI308 processors are covered under the commitment, Nvidia will split sales proceeds from its H20 chip. The Trump administration has not yet made a decision on how to spend the funds, according to FT sources.
She said, “Restrictions on H20 sales to China took a $2.5 billion (€2.1 billion) hit to Nvidia’s Q1 revenue, but it clearly believes the 15% contribution is well worth it, to keep access to the vast and fast developing market.
Last week, the US government started granting Nvidia licenses to sell its H20 processor in China. The action was a reversal of the White House’s April prohibition on the chip’s sales to China due to worries that the technology may be exploited for military reasons. The H20 chip was created especially for the Chinese market, adhering to regulations that former President Joe Biden imposed in 2023.
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