NVIDIA and Advanced Micro Devices (AMD) have agreed to pay the U.S. government 15% of their AI chip sales revenue from China. This agreement allows both companies to obtain export licenses and resume sales to the Chinese market.
This new condition introduces a direct financial impact on NVIDIA's profitability from its China operations. While it reopens market access, the revenue share represents a significant cost of doing business under the new trade framework.
The deal sets a challenging precedent for government intervention into private enterprise, as noted by analysts. It reflects the complex and evolving nature of U.S.-China trade relations and their direct implications for semiconductor companies like NVIDIA.
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