US President Donald Trump’s administration has reached an unprecedented agreement with Nvidia and AMD, requiring the companies to pay 15% of their revenue from selling microchips in China. The deal is expected to net the government around $2 billion.
The arrangement is seen as a price for keeping the US tech giants’ businesses afloat after the imposition of tariffs on Chinese-made microchips. However, it has raised concerns about the impact on the global AI industry and chipmakers.
In April, Nvidia’s stock price plummeted after the announcement of new tariffs, due to increased material costs and the potential disruption to supply chains. The agreement with Trump’s administration may have helped mitigate this risk, but its long-term effects remain unclear.
The move has also sparked criticism of Trump’s dealmaking tactics, with some accusing him of breaking promises and prioritizing short-term gains over long-term benefits.
Source: https://www.theverge.com/regulator-newsletter/757996/trump-screwed-over-nvidias-chinese-sales-then-let-them-happen