Intel & AMD CPUs Blocked By China: No Government PC To Use Chips From US Companies
Nvidia, AMD, and Uncle Sam: A Slice of AI Chip Sales to China
Intel & AMD CPUs Blocked By China: No Government PC To Use Chips From US Companies
In a surprising turn of events, the tech world is buzzing about a new deal involving Nvidia, AMD, and the US government. Imagine this: two of the biggest names in the chip industry, Nvidia and AMD, are now essentially sharing a portion of their revenue from AI chip sales in China with the US government. Sounds a bit like a sci-fi movie, doesn't it? But it's real, and it's happening right now in August 2025.
What's the Deal?
Here's the scoop: Nvidia and AMD have agreed to give the US government 15% of their revenue from sales of specific high-end AI chips to China. In return, they get something pretty valuable: export licenses. These licenses allow them to continue selling their advanced chips in the Chinese market, which is a massive and rapidly growing hub for AI development. According to TechCrunch, this deal came about because the global AI chip race narrative shifted from national security to tariffs. It's like a high-stakes game of chess where the pieces are chips, money, and political influence.
Why is this happening? Well, the US government has been trying to limit China's access to technology that could be used for things that might threaten US national security, especially AI and weapons development, as reported by The Guardian. But China's AI sector is booming. Analysts estimate it will grow to around $100 billion this year, a nearly 50% jump from last year, according to BBC News. So, cutting off China completely isn't really feasible. This deal allows the US to keep an eye on things while also getting a piece of the pie.
Motivations and Perspectives
Let's break down the motivations here. For Nvidia and AMD, it's all about market access. China is a huge market, and they don't want to be left out. By agreeing to share some of their revenue, they can keep selling their chips and stay competitive. The US government gets revenue and a degree of control over the technology being accessed by China.
But what about China? Well, it's a bit more complicated. On one hand, they need these chips to fuel their AI ambitions. On the other hand, they might not be thrilled about the US government profiting from their tech growth. It's a delicate balancing act.
Is Everyone Happy?
Of course not! This deal has its critics. Some worry that it could set a strange precedent. Will other companies in other sectors have to start paying the US government for access to foreign markets? Others are concerned about how this will affect the relationship between the US and China. Is this a step towards cooperation or further competition?
My Take
In my opinion, this deal is a pragmatic, albeit unusual, solution to a complex problem. It acknowledges the reality of China's growing AI industry while also allowing the US to maintain some level of oversight. However, it's crucial that this doesn't become a slippery slope. We need to ensure that such arrangements are carefully considered and don't lead to unintended consequences that could stifle innovation or escalate tensions between nations.
What do you think? Is this a win-win situation, or are there hidden risks lurking beneath the surface?
References
- NYTimes: U.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to China
- Bloomberg: Nvidia, AMD to Pay 15% of China Chip Sale Income to US
- TechCrunch: Nvidia, AMD may sell high-end AI chips to China if they pay US a cut
- The Guardian: Nvidia and AMD agree to pay 15% of China chip export revenues to US
- Fox Business: Nvidia and AMD strike major revenue-sharing deal with US government over China chip sales
- BBC: Chip deal: Why the US is taking a cut from China sales
- Feature Image: US-China Chip War