According to NVIDIA and AMD, NVIDIA and AMD were agreed to pay 15 % reduction in the sales of specialized china china, in a deal that still reeling the business world.
The arrangement, which is a new type of “export tax”, is an unprecedented step that ends a blockade for months and reopens one of the world’s largest markets for the most important two slides makers in America.
The news reported by the Financial Times for the first time, the original tactics and transactions published by the Trump administration to generate revenues and control the flow of strategic technology. NVIDIA and AMD chips are widely searched by companies and governments to train artificial intelligence tools in the current artificial intelligence race.
Why did they agree to pay
For NVIDIA and AMD, the agreement to pay part of their profits was the least two bonuses. Being completely closed from the Chinese market was a financial disaster.
NVIDIA has been severely struck. After the administration prevented its own chips in China in April, the company was forced to bear a cost of $ 4.5 billion for the excess stock that he could no longer sell.
In May, investors warned that the restrictions will cost the company an estimated $ 8 billion in revenue for the full fiscal year. In the face of the loss of billions, the delivery of more than 15 % of the price of future sales was ready to pay it.
How did we get here
The confrontation is the latest chapter in the American -Chinese technical war. The United States government is trying to slow military progress in Beijing by preventing it from reaching high -end artificial intelligence chips.
After the previous administration banned the sale of its strongest processors, NVIDIA and AMD were designed intelligently designed for the lowest strength-such as NVIDIA’s H2O and AMD’s Mi308-specifically for the Chinese market.
But in April, the Trump administration tightened the screws, requires a special license to sell to these less powerful chips. The move sparked months of intense and high -risk pressure, characterized by several visits from the White House from Ginsen Huang, CEO of NVIDIA, which eventually led to this new arrangement.
For the Trump administration, the deal is a victory over multiple fronts. It provides a new stream of federal revenues that can help finance the huge tax cuts in a “beautiful, beautiful bill”, which is the presidential signature legislation.
It also allows the administration to look harsh in China while protecting the financial health of American companies at once.
In a carefully formulated statement to Gizmodo, a NVIDIA spokesman avoided the number 15 % but he admitted the new reality.
“We are following the rules determined by the US government to participate in global markets,” she says. “Although we have not shipped H2O to China for several months, we hope that export control rules will allow America to compete in China and all over the world.”
The spokesperson added: “America cannot repeat 5G and lose communications driving.
This new deal is a radical departure from traditional commercial policy.
Governments usually encourage and support exports from their national heroes to enhance commercial balances. However, this new model compels the most successful companies in America to pay the competitions of competition abroad.
It is a pragmatic compromise that gives NVIDIA a way to restore its position in the dominant market and may pay its market value beyond an unprecedented threshold worth $ 5 trillion. But it also puts an amazing precedent for how the US government controls the most future strategic industries.
Amd did not respond immediately on a request for comment.
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