Deal Details Unveiled

In a groundbreaking agreement, Nvidia Corp. and Advanced Micro Devices Inc. (AMD) have consented to allocate 15% of their revenue from specific chip sales in China to the United States government. This revelation comes from a report by the Financial Times, which cites sources close to the matter, including a US official.

Securing Export Licenses

The arrangement was made as a condition for obtaining semiconductor export licenses for the Chinese market, approvals that were finalized last week. This move underscores the intricate balance of trade and technology transfer between the US and China.

Revenue Sharing Breakdown

Under the terms of the deal, Nvidia will contribute 15% of the proceeds from its H20 chip sales in China, while AMD has agreed to a similar arrangement regarding its MI308 chip revenues. This strategic concession highlights the companies' commitment to maintaining their presence in the lucrative Chinese market amidst escalating trade tensions.