US to take cut of AI Chip sales to China

[JLW]

Nvidia and Advanced Micro Devices are expected to pay the United States 15 percent of the money they take in from selling artificial intelligence chips to China, as part of a highly unusual financial agreement with the Trump administration….

While the Trump administration publicly said a month ago that it was giving the green light to Nvidia to sell an A.I. chip called H20 to China, it did not actually issue the licenses making those sales possible.

On Wednesday, Jensen Huang, Nvidia’s chief executive, met with President Trump at the White House and agreed to give the federal government its 15 percent cut, essentially making the federal government a partner in Nvidia’s business in China, said the people familiar with the deal. The Commerce Department began granting licenses for A.I. chip sales two days later, these people said…

There are few precedents for the Commerce Department agreeing to grant licenses for exports in exchange for a share of revenue. But the unorthodox payments are consistent with Mr. Trump’s increasingly interventionist role in international business deals involving American companies.

The deal to license A.I. chips caused immediate outcry among national security experts who have been opposed to A.I. chip sales to China. They worry that the Trump administration’s decision to leverage export licenses for money will encourage Beijing to pressure other companies to make similar arrangements to loosen restrictions on other technology like semiconductor manufacturing tools and memory chips.

https://www.nytimes.com/2025/08/10/technology/us-government-nvidia-amd-chips-china.html

***************************

So, now under Trump the US government is now a partner is selling our most advanced technology to China. I thought China was enemy No. 1. I don’t know what you call this arrangement. Is it a form of socialism or fascism, or is it a special kind of tax? The government is now involved in the operations of AMD and Nvidia.

No matter what this is called the bottom line is that it is a boon to China, and China is thrilled. China is getting the advanced Chips they so highly desire.

 

[1srelluc]

So now the chi-coms get spyware included in the chips we send them and they have to pay for the privilege.

 

[egp320i]

Nvidia and Advanced Micro Devices are expected to pay the United States 15 percent of the money they take in from selling artificial intelligence chips to China, as part of a highly unusual financial agreement with the Trump administration….

While the Trump administration publicly said a month ago that it was giving the green light to Nvidia to sell an A.I. chip called H20 to China, it did not actually issue the licenses making those sales possible.

On Wednesday, Jensen Huang, Nvidia’s chief executive, met with President Trump at the White House and agreed to give the federal government its 15 percent cut, essentially making the federal government a partner in Nvidia’s business in China, said the people familiar with the deal. The Commerce Department began granting licenses for A.I. chip sales two days later, these people said…

There are few precedents for the Commerce Department agreeing to grant licenses for exports in exchange for a share of revenue. But the unorthodox payments are consistent with Mr. Trump’s increasingly interventionist role in international business deals involving American companies.

The deal to license A.I. chips caused immediate outcry among national security experts who have been opposed to A.I. chip sales to China. They worry that the Trump administration’s decision to leverage export licenses for money will encourage Beijing to pressure other companies to make similar arrangements to loosen restrictions on other technology like semiconductor manufacturing tools and memory chips.

https://www.nytimes.com/2025/08/10/technology/us-government-nvidia-amd-chips-china.html

***************************

So, now under Trump the US government is now a partner is selling our most advanced technology to China. I thought China was enemy No. 1. I don’t know what you call this arrangement. Is it a form of socialism or fascism, or is it a special kind of tax? The government is now involved in the operations of AMD and Nvidia.

No matter what this is called the bottom line is that it is a boon to China, and China is thrilled. China is getting the advanced Chips they so highly desire

Yeah I don't get this, the US is extorting US companies with a 15% tax to sell chips to china they can use in Ai, this makes zero logical sense, who comes up with this bullshit anyways?
why can't nvidia and AMD say no? they have the right to not sell chips to china, sure it will hurt their bottom line but it's for a security reason.

Trump does some good thing but other times he does a WTF are you thinking

For all those pundits that have called me some hardcore maga, well you are wrong on that front

there are many things he has done that I question, I don't agree with 100% of things he does

this tariff back and forth, raise, remove, it's like he's trying squeak out every last drop before they cave in

set a percent that works for both sides and stop messing with it

 

[JLW]

L

So now the chi-coms get spyware included in the chips we send them and they have to pay for the privilege.

That’s a strange rationalization to sell advanced chips to China. If spyware were in the chips why did Trump object to the sale in the first place? Second, how is China paying for the privilege? It AMD and Nvidia paying the US government;

 

[JGalt]

Nvidia and Advanced Micro Devices are expected to pay the United States 15 percent of the money they take in from selling artificial intelligence chips to China, as part of a highly unusual financial agreement with the Trump administration….

While the Trump administration publicly said a month ago that it was giving the green light to Nvidia to sell an A.I. chip called H20 to China, it did not actually issue the licenses making those sales possible.

On Wednesday, Jensen Huang, Nvidia’s chief executive, met with President Trump at the White House and agreed to give the federal government its 15 percent cut, essentially making the federal government a partner in Nvidia’s business in China, said the people familiar with the deal. The Commerce Department began granting licenses for A.I. chip sales two days later, these people said…

There are few precedents for the Commerce Department agreeing to grant licenses for exports in exchange for a share of revenue. But the unorthodox payments are consistent with Mr. Trump’s increasingly interventionist role in international business deals involving American companies.

The deal to license A.I. chips caused immediate outcry among national security experts who have been opposed to A.I. chip sales to China. They worry that the Trump administration’s decision to leverage export licenses for money will encourage Beijing to pressure other companies to make similar arrangements to loosen restrictions on other technology like semiconductor manufacturing tools and memory chips.

https://www.nytimes.com/2025/08/10/technology/us-government-nvidia-amd-chips-china.html

***************************

So, now under Trump the US government is now a partner is selling our most advanced technology to China. I thought China was enemy No. 1. I don’t know what you call this arrangement. Is it a form of socialism or fascism, or is it a special kind of tax? The government is now involved in the operations of AMD and Nvidia.

No matter what this is called the bottom line is that it is a boon to China, and China is thrilled. China is getting the advanced Chips they so highly desire.

When did we declare war on China? I must have missed that.

Guess I should start throwing out all that shit I bought at Walmart.

 

[JLW]

When did we declare war on China? I must have missed that.

Guess I should start throwing out all that shit I bought at Walmart.

This is about the sale of advanced technology to China, not about a coffee maker you can buy at Walmart.

 

[egp320i]

So now the chi-coms get spyware included in the chips we send them and they have to pay for the privilege.

interesting take but china is smart, they are not going to test these chips for that reason?

putting spyware on a CPU, really? that would need to be in the code of the chip

what if these chips get redirected to a US firm, now they have spyware

intel and AMD would catch some major hell

I am not an engineer but seems to me putting a spyware EXE on a certain batch of chips would be a painstaking process.

 

[JGalt]

This is about the sale of advanced technology to China, not about a coffee maker you can buy at Walmart.

So how long before I can go there and buy a new wide-screen TV with AI capabilities? Or a coffee maker that know just how I like my coffee?

Just asking.

 

[1srelluc]

L

That’s a strange rationalization to sell advanced chips to China. If spyware were in the chips why did Trump object to the sale in the first place? Second, how is China paying for the privilege? It AMD and Nvidia paying the US government;

Your ilk is always going on about increased prices due to Trump being passed along to the customer.....So who's the customer in this instance?....That would be chi-coms there skippy.

 

[JLW]

So how long before I can go there and buy a new wide-screen TV with AI capabilities? Or a coffee maker that know just how I like my coffee?

Just asking.

The sale of advanced chips to China is about national security. See if China will sell its most advanced technology to us? China wants those chips and Trump gave it to them on a silver platter. China couldn’t be happier.

 

[JLW]

Your ilk is always going on about increased prices due to Trump being passed along to the customer.....So who's the customer in this instance?....That would be chi-coms there skippy.

Even if what you post is true, do you really think China gives a damn about paying an extra 15% for our most advanced technology? They want those chips for their own military industrial complex and Trump just handed it to them.

 

[JGalt]

The sale of advanced chips to China is about national security. See, if China will sell its most advanced technology to us? China wants those chips and Trump gave it to them on a silver platter. China couldn’t be happier.

Calm down now. AI chips aren't some magical technology that gets up on its own legs and walks around the room. You've watched too many Terminator movies.

AI Overview

AI chips are specialized hardware components designed to accelerate artificial intelligence workloads, particularly those involving machine learning and deep learning. Unlike general-purpose CPUs, AI chips are optimized for the types of computations that these AI algorithms require, often using parallel processing to handle large amounts of data simultaneously. This leads to faster and more efficient AI processing compared to using traditional CPUs.


Here's a more detailed breakdown:
Key Characteristics of AI Chips:

• Parallel Processing:
  .

AI chips are designed to perform many calculations at the same time, which is crucial for the complex algorithms used in AI.

• Specialized Architecture:
  .

They often have unique architectures tailored to specific AI tasks, such as matrix multiplication, which is common in neural networks.

• High Bandwidth:
  .

AI chips need to move large amounts of data quickly, so they often have high memory bandwidth to support the computational demands.

• Low Power Consumption:
  .

Especially important for edge devices, AI chips need to be energy-efficient to minimize power usage.

Types of AI Chips:

• • GPUs (Graphics Processing Units):
    .

Originally designed for graphics rendering, GPUs have become widely used for AI due to their parallel processing capabilities.

• FPGAs (Field-Programmable Gate Arrays):
  .

These are flexible chips that can be reprogrammed for specific AI tasks, offering a balance of performance and customization.

• ASICs (Application-Specific Integrated Circuits):
  .

These chips are custom-designed for specific AI applications, offering the highest performance but with less flexibility.

• NPUs (Neural Processing Units):
  .

Specifically designed for neural network computations, NPUs are becoming more prevalent in AI applications.

Why are AI chips important?

• • Enhanced AI Performance:
    AI chips enable faster and more efficient training and inference of AI models.
    

• New Applications:
  They unlock possibilities for AI in various fields, including autonomous vehicles, personalized medicine, and advanced robotics.
  

• Cost Reduction:
  By optimizing for AI workloads, AI chips can reduce the overall cost of running AI applications.
  

In essence, AI chips are a critical component in the ongoing advancement of artificial intelligence, enabling more powerful, efficient, and accessible AI systems.

 

[Twisted Gypsy Child]

The sale of advanced chips to China is about national security. See if China will sell its most advanced technology to us? China wants those chips and Trump gave it to them on a silver platter. China couldn’t be happier.

anyone remember "chicom Joe"

 

[JLW]

Calm down now. AI chips aren't some magical technology that gets up on its own legs and walks around the room. You've watched too many Terminator movies.

AI Overview

AI chips are specialized hardware components designed to accelerate artificial intelligence workloads, particularly those involving machine learning and deep learning. Unlike general-purpose CPUs, AI chips are optimized for the types of computations that these AI algorithms require, often using parallel processing to handle large amounts of data simultaneously. This leads to faster and more efficient AI processing compared to using traditional CPUs.


Here's a more detailed breakdown:
Key Characteristics of AI Chips:

• Parallel Processing:
  .

AI chips are designed to perform many calculations at the same time, which is crucial for the complex algorithms used in AI.

• 
  
• Specialized Architecture:
  .

They often have unique architectures tailored to specific AI tasks, such as matrix multiplication, which is common in neural networks.

• 
  
• High Bandwidth:
  .

AI chips need to move large amounts of data quickly, so they often have high memory bandwidth to support the computational demands.

• 
  
• Low Power Consumption:
  .

Especially important for edge devices, AI chips need to be energy-efficient to minimize power usage.

Types of AI Chips:

• • GPUs (Graphics Processing Units):
    .

Originally designed for graphics rendering, GPUs have become widely used for AI due to their parallel processing capabilities.

• 
  
• FPGAs (Field-Programmable Gate Arrays):
  .

These are flexible chips that can be reprogrammed for specific AI tasks, offering a balance of performance and customization.

• 
  
• ASICs (Application-Specific Integrated Circuits):
  .

These chips are custom-designed for specific AI applications, offering the highest performance but with less flexibility.

• 
  
• NPUs (Neural Processing Units):
  .

Specifically designed for neural network computations, NPUs are becoming more prevalent in AI applications.

Why are AI chips important?

• • Enhanced AI Performance:
    AI chips enable faster and more efficient training and inference of AI models.
• 
  
• New Applications:
  They unlock possibilities for AI in various fields, including autonomous vehicles, personalized medicine, and advanced robotics.
• 
  
• Cost Reduction:
  By optimizing for AI workloads, AI chips can reduce the overall cost of running AI applications.

In essence, AI chips are a critical component in the ongoing advancement of artificial intelligence, enabling more powerful, efficient, and accessible AI systems.

No, AI Chips will not get up and walk to China. They will be put in fed ex box and sent overnight express delivery!

There is a reason many national security people are opposed to this.

 

[JGalt]

anyone remember "chicom Joe"

The US-based companies Nvidia and AMD wanted this.


AI Overview

According to recent news reports, Nvidia and AMD have agreed to pay the US government 15% of the revenue from certain AI chip sales in China. This arrangement is a condition for obtaining export licenses, effectively allowing them to resume selling their H20 and MI308 chips in China, according to the Financial Times and other reports.

While the agreement effectively allows sales to resume, the structure of the deal, requiring a revenue share, is unprecedented for US export policy, according to Axios. The Trump administration's Commerce Secretary stated that the goal is to keep China reliant on American technology by allowing sales of less advanced chips.

Therefore, it appears Nvidia and AMD sought to resume AI chip sales to China, and the Trump administration agreed to grant licenses under the condition of the 15% revenue share

 

[JGalt]

No, AI Chips will not get up and walk to China. They will be put in fed ex box and sent overnight express delivery!

There is a reason many national security people are opposed to this.

Specifically which national security people are opposed to this?

 

[Twisted Gypsy Child]

The US-based companies Nvidia and AMD wanted this.


AI Overview

According to recent news reports, Nvidia and AMD have agreed to pay the US government 15% of the revenue from certain AI chip sales in China. This arrangement is a condition for obtaining export licenses, effectively allowing them to resume selling their H20 and MI308 chips in China, according to the Financial Times and other reports.

While the agreement effectively allows sales to resume, the structure of the deal, requiring a revenue share, is unprecedented for US export policy, according to Axios. The Trump administration's Commerce Secretary stated that the goal is to keep China reliant on American technology by allowing sales of less advanced chips.

Therefore, it appears Nvidia and AMD sought to resume AI chip sales to China, and the Trump administration agreed to grant licenses under the condition of the 15% revenue share

insider trading like Pelosi and the DC bandits

 

[JGalt]

insider trading like Pelosi and the DC bandits

Trump is already a multi-billionaire. He can't be bought.

 

[JLW]

Specifically which national security people are opposed to this?

From my link:

In July, two former national security officials in the Trump administration, Matt Pottinger and David Feith, and 18 other people with a mix of national security and economics expertise wrote a letter to the administration calling its policy change “a strategic misstep that endangers the United States’ economic and military edge in artificial intelligence.”

 

[1srelluc]

Even if what you post is true, do you really think China gives a damn about paying an extra 15% for our most advanced technology? They want those chips for their own military industrial complex and Trump just handed it to them.

They won't be of the same quality the US gets.

Just like the .mil equipment (like jets) we sell to our "allies"....They don't get top-rung.