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Nvidia is a technology company, known for the design and manufacturing of graphics processing unit (GPU).
Two big chip -making companies, Nvidia and AMD will now give 15% of the earnings from the sale of their AI chips to China to the US government. In this way, taking part of the revenue is a completely new and unique step. The New York Times has given this information quoting three people in its report.
License to sell chip after 15% revenue sharing deal
Last month, the Trump administration had asked Nvidia to allow Nvidia to sell its H20 AI chip in China, but the licenses were not given. Then on Wednesday, Nvidia CEO Jensen Huang met President Donald Trump at the White House and confirmed the 15% revenue sharing deal.
Two days later, the US Commerce Department started issuing licenses for the sale of these chips. That is, the US government has now become a partner of business in Nvidia in China.
AMD’s Mi308 chip is also part of this deal. In April, the Trump administration banned the sale of this chip in China, but now sales have been allowed under the deal.
Trump administration has interfered in international deals before
The Trump administration has already interfered in international deals of American companies. For example, in June, Japan’s Nippon Steel was approved to invest in US Steel, in which the government took the so -called golden share in the company. The government or a particular investor gets a golden share in a company. Through this, they can keep special control over the big decisions of the company, even if their share is less.
The government will get around ₹ 17,000 crore from the deal
Bersentetin Research can get $ 2 billion (about ₹ 17,000 crore) from Bersenie Research dollars (about 7,000 crore Rubik, this deal. NVDia can sell its H20 chip of $ 15 billion in China by $ 15 billion in China by the end of this year. AMD can be sold up to ₹ 7 thousand crores.
Selling AI chips threatens to America’s security
- Lisa Tobin, who was a director of the National Security Council in Trump and Biden administration, said, “This is a wrong step. This will give China a chance to put further pressure so that it can make such a deal with other companies. We are selling our national security for corporate profits.”
- Nvidia spokesman Kane Brown said the company follows the rules of the US government. He said, “We have not sent H20 chips to China for months, but we hope that the export rules will give us a chance to compete around China and around the world.”
Why changed the attitude of Trump administration?
In April, the Trump administration banned the sale of these chips, as they were considered to strengthen China’s AI technology. But Jenson Huang explained to Trump that if American companies were not allowed to sell in China, Chinese company Huawei would increase the market share there. Huang said that this would harm American companies, while China would invest more money in its research and development. Huang said, “American technology should be global standard, like US dollars.”
H20 chip not the best chip of Nvidia
Commerce Secretary Howard Lutnik said on CNBC last month that the H20 chip is not the best chip in Nvidia, but it is his “fourth best” chip. He said that the US aim is to always be one step ahead of China, and therefore the best chips will not be sold to China.
The company designs and manufactures GPU
Nvidia is a technology company, known for the design and manufacturing of graphics processing unit (GPU). It was founded in 1993 by Jensen Huang, Curtis Prem and Chris Malachowski. It is headquartered in Santa Clara, California.
Nvidia designs and manufactures chip for gaming, cryptocurrency mining and professional applications. Along with this, its chip system is also used in vehicles, robotics and other devices.
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