Name: What experts say about Nvidia and AMD paying the U.S. government 15% of China AI chip sales
Uploaded: 2025-08-16T16:14:54.000Z
Duration: 3 min 24 s
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Today's top corporate story reports say NVIDIA and AMD have agreed to give the U.S. government 15 percent of the revenue that they generate from exporting AI chips to China.

In return the companies will receive export licenses to sell chips in China.

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I think from NVIDIA's perspective you know the potential of not shipping anything in China or shipping to China with this 15 percent deal is clearly a better situation for them.

But it obviously calls into question what's what's the national security concern here.

So it's one of the questions we have is is AMD able to absorb that 15 percent in the same way NVIDIA has.

And therefore you know that that sort of export tax or whatever you want to call it may benefit NVIDIA more than it benefits AMD because you know they they're in a better position from a margin standpoint.

As an investor you're worried because then is this an arbitrary decision by the government.

Does every president get to play kingmaker in terms of these deals.

So I think that's really what the concern is.

And we still have additional tariffs and trade deals to come from the China negotiation.

So we're not sure exactly if it's over yet.

But if this is a way in it's actually interesting because the Chinese government is also pooh poohing the H2O chips and the AMD chips telling their their teams that hey we've got a backdoor here.

There's something that might be you know security issues on the other end.

So I'm not sure exactly what's going on here because China is not welcoming of the chips telling their teams not to use it.

And the U.S. is saying take a 15 percent cut.

So I'm not sure exactly what the story is on this.

My question is do companies ultimately like Tesla and Apple get wrapped up in this.

And this has been focused obviously on AMD NVIDIA.

Some of the other chip players may be involved in this 15 percent revenue share state sponsored capitalism.

But I wonder if it ends up kind of expanding from that.

I think it does set a unique precedence something that personally I don't I don't like that.

I think that companies should just kind of do what they want to do.

But I think from the perspective of NVIDIA to have the White House as one of your backers I mean it's that's a powerful it's a powerful ally.

I have not seen anything quite like this in the United States.

Of course the place where you tend to see this kind of government intervention in the market is China.

And we're sort of following China's playbook now of the government getting very much involved in the affairs of individual countries.

The real issue here is that export controls used to be this area of of policy where you looked at the technology and made very hard judgments about it whether it was critical to military intelligence national security that we not allow things to be exported.

And you allow the sale of chips that had previously been restricted under export controls.

It makes a security issue more of a trade issue.

The Chinese have always wanted to engage in a conversation with the United States about export controls as if it was a trade issue.