Aug. 11 (UPI) -- U.S. chip makers Nvidia and Advanced Micro Devices inked an "unprecedented" deal in which they will pay 15% of their sales to China to the U.S. treasury in exchange for export licenses to ship their advanced H20 and MI308 semiconductors.
The administration of U.S. President Donald Trump has begun issuing licenses to both companies to supply the AI chips to China, sources and officials told the BBC and the Financial Times on Sunday, after Nvidia CEO Jensen Huang met with Trump last week.
The arrangements came two months after Trump reversed an earlier decision banning Nvidia from exporting its H20 chip to China, with the Santa Clara, Calif., firm moving to cut the deal because the Commerce Department's Bureau of Industry and Security had not issued the expected licenses.
Nvidia developed the H20 chip specifically for the Chinese market after the administration of President Joe Biden imposed sweeping export controls on advanced chips for AI in 2023. Before Trump's ban, analysts estimated Nvidia would ship 1.5 million H20s this year, worth $23 billion.
Related
