(Bloomberg) – Nvidia Corp. (NVDA) and Advanced Micro Devices Inc. (AMD) agreed to pay 15% of their income, sales of Chinese IA flea markets in the United States government in an agreement to obtain export licenses, an unusual arrangement that could disclice American companies and Beijing.
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NVIDIA plans to share 15% of sales income from its H20 AI accelerator in China, according to a person familiar with the issue. AMD will deliver the same share of the MI308 income, added the person, asking anonymity to discuss internal deliberations.
The arrangement reflects the constant efforts of the American president Donald Trump to design a financial payment for America in exchange for concessions on trade. Its administration has shown a desire to relax commercial conditions such as prices in exchange for giant investment in the United States – as in Apple Inc.’s commitment (AAPL) to spend $ 600 billion on national manufacturing. But such a narrow and selected export tax has little precedent in the history of modern companies.
Beijing, who has become more and more hostile to the idea that Chinese companies deploy the H20, does not warm up at the idea of a chip tax. Yuyuantantian, a social media account affiliated to the central television of China managed by the State which regularly signals Beijing’s thought on trade, criticized the supposed vulnerabilities of security and the ineffectiveness of the chip on Sunday.
“This appearance that apparently pro quo is unprecedented from the point of view of export control. The arrangement risks invalidating the justification for national security for American export controls,” said Jacob Feldgoise, researcher at the DC Center for Security and Emerging Technology.
This “will probably undermine the position of the United States during negotiations with allies to implement additional controls,” he added. “Allies may not believe in American decision -makers if they are willing to exchange these same national security concerns for economic concessions – either American companies or foreign governments.”
A spokesman for Nvidia said that the company followed the American export rules, adding that even if he has not shipped H20 fleas to China for months, he hopes that the rules will allow American companies to compete in China. AMD did not immediately respond to a request for comments.
The Financial Times declared development earlier. He followed a separate report from the same point of sale as the Commerce Department had started to issue H20 licenses last week, a few days after Nvidia Director, Jensen Huang, met Trump.
