Nvidia & AMD to Pay US 15% of China AI Chip Revenue

US-China Chip Revenue Deal

• 🤝 Nvidia and AMD have agreed to pay the U.S. government 15% of their revenue from specific AI chip sales in China.
• 💡 This deal reportedly grants Nvidia and AMD licenses to continue selling certain chips in China, which is a major market for them.
• 💰 The revenue collected by the U.S. government is not tariff revenue but can be used to pay down the national debt or for other purposes.
• 🎯 This arrangement is described as a form of 'pay-to-play' strategy by the administration to encourage investment and new trade policies.

Trade Relations and Tariffs

• 📈 The agreement comes as the U.S. prepares to end a pause on higher tariffs on China, with rates previously reaching up to 145%.
• 🇨🇳 China has expressed a desire to extend the negotiation deadline, but there has been no confirmation from the President.
• 🚜 President Trump is reportedly urging China to quadruple its soybean orders, adding pressure to the trade relationship.
• 🌾 Increased agricultural purchases from the U.S. by China is a key objective to reduce the trade deficit.

UFC Media Rights Agreement

• 🥊 Paramount and TKO have announced a significant media rights agreement for the UFC, valued at approximately $7.7 billion over seven years.
• 📺 Starting in 2026, Paramount Plus will gain access to UFC events, aiming to attract more subscribers.
• 💸 The UFC is moving away from a pay-per-view model, which limited access, towards a model that offers broader availability through a subscription service.
• 📊 This deal underscores the increasing importance of sports rights in the evolving media landscape, following similar large deals for other major sports leagues.