Nvidia & AMD's New AI Chip Export Deal: 15% Revenue Share for US Licenses

Unprecedented AI Chip Export Deal

• ⚡ A new agreement requires Nvidia and AMD to pay 15% of their China chip sales revenue to the US government in exchange for export licenses.
• 💡 This arrangement is described as a new tax on American companies seeking to sell advanced technology in China.

Transactional Approach to Regulation

• 🤝 The deal originated from a meeting between President Trump and Nvidia CEO Jensen Huang, where a transactional approach was taken regarding export permissions.
• 💰 The President initially asked for 20% of revenue, which was negotiated down to 15%.
• ❓ This raises questions about whether other companies will face similar revenue-sharing requirements for regulatory interactions or benefits received from the US government.

Future Chip Negotiations and AI Advancements

• 🚀 The President indicated a willingness to negotiate the release of higher-end Nvidia chips, such as the Blackwell, but suggested degrading them by 30-50%.
• ⚠️ The H20 chip, an older model, is already available to China in different forms.
• 📈 There is no indication yet of the revenue percentage the government would take for releasing more advanced chips like Blackwell.

Setting a Precedent for Export Deals

• 🧩 The most significant takeaway is the precedent this sets for future government-industry deals, rather than the specific chip involved.
• 📉 Analysts like Stacy Rascan are concerned about a potential