Nvidia and AMD agreed to pay the U.S. government 15% from their sale to China

[ftan42]

The U.S. government has implemented a unique revenue-sharing arrangement, requiring AMD and Nvidia to pay 15% of their revenue from chip sales to China. This payment is tied to the issuance of export licenses by the U.S. government. In essence, Nvidia and AMD must agree to this arrangement in order to obtain the necessary export licenses to sell their specialized chips to China.

 

[syed putra]

But these are downgraded chips. And sell at higher price to Chinese due to taxes nit likely Chinese will buy or will look like suckers.

 

[ftan42]

These downgraded chips, with a performance of 15% of their original capacity, were still superior to their existing Chinese counterparts. However, after discovering a potential security vulnerability, China advised the company to cease using these chips. In response, Trump suggested an even better downgrade, utilize approximately 30% to 50% of their original capacity chip in its place.

 

[Scrooball (clone)]

So like paying the secret society boss to continue selling on the street? Haha

 

[Eisenhut]

So like paying the secret society boss to continue selling on the street? Haha

Yes , you can say its a tribute to colonial powers. Chinese and China has knelt to Trump

 

[rotiprata]

TAGO...strikes again..!!

 

[ftan42]

He has no cards left after the Sweden meeting, and is now delaying to find a solution.

 

[syed putra]

These downgraded chips, with a performance of 15% of their original capacity, were still superior to their existing Chinese counterparts. However, after discovering a potential security vulnerability, China advised the company to cease using these chips. In response, Trump suggested an even better downgrade, utilize approximately 30% to 50% of their original capacity chip in its place.

Trump just dunno he is killing his own US industry.
That is almost 50% of the market gone for Nvidia and AMD.
Chinese data centres will Wait for home grown AI chips.