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Chip giants Nvidia and AMD to pay 15% of China revenue to US

BBC News

In a statement to the BBC, Nvidia also said: "America cannot repeat 5G and lose telecommunication leadership. America's [artificial intelligence] tech stack can be the world's standard if we race." Under the agreement, Nvidia will pay 15% of its revenues from H20 chip sales in China to the US government, while AMD will give the same percentage from its MI308 chip revenues, which was first reported by the Financial Times. Charlie Dai, vice president and principal analyst at global research firm Forrester, said this agreement is "unprecedented". "The arrangement underscores the high cost of market access amid escalating tech trade tensions, creating substantial financial pressure and strategic uncertainty for tech vendors", he added.