Feed: Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics
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Title: NVIDIA may give US government a cut of its profits to sell AI chips to
China

Date: Mon, 11 Aug 2025 12:00:03 +0000
Link: https://www.engadget.com/ai/nvidia-may-give-u...

The debate over whether AI chipmakers should be allowed to sell their
products to China has taken an unusual turn. The US government has reportedly
given NVIDIA and Advanced Micro Devices (AMD) permission to make the sales
but for one big catch: 15 percent of the sales. The news was first reported
by The Financial Times, which cited multiple people familiar with the
agreement.

In July, NVIDIA announced that the US government would approve export
licenses to sell its H20 AI GPUs after blocking their sale in April. NVIDIA
created these specific chips ΓÇö which are less powerful than ones sold in
the US ΓÇö in response to restrictions on sales to China. It previously
developed the A800 and H800 chips for the Chinese market, but those were also
banned.

Now, NVIDIA and AMP were both reportedly granted export licenses for China
last week, after agreeing to give the government 15 percent of their profits.
AMP will provide the share from sales of its MI308 chip.

There's significant debate over whether selling AI chips to China will
endanger US national security. At the end of July, 20 national security
experts and past government officials ΓÇö including President Trump's former
deputy national security advisor, Matt Pottinger ΓÇö wrote a letter to Howard
Lutnick, the US Secretary of Commerce, stating as much.

The signatories "believe this move represents a strategic misstep that
endangers the United StatesΓÇÖ economic and military edge in artificial
intelligence." They worry it will restrict the number of chips available for
the US and be used by China's military, among other concerns. NVIDIA
disagrees, claiming the export licenses will allow it to compete with Chinese
businesses.

This article originally appeared on Engadget at
https://www.engadget.com/ai/nvidia-may-give-u...
profits-to-sell-ai-chips-to-china-120003260.html?src=rss

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