Nvidia’s Deal with China: US Shifts to Revenue Sharing for Advanced Chips

A groundbreaking agreement between the U.S. government and semiconductor giants Nvidia and AMD has significantly impacted the future of AI trade with China. This deal allows these companies to continue selling high-performance AI chips to the Chinese market, but under a new revenue-sharing model: 15% of the sales revenue will be paid directly to the U.S. Government. This shift represents a significant change in U.S. tech policy regarding exports to China, moving away from outright bans and towards a more economically driven approach.