Nvidia and AMD Secure Permits to Export to China

Nvidia and AMD reached an agreement with the US government to restart sales of their AI chips to China. The chipmakers would receive export licences in exchange for paying a levy of 15% of sales in China.

The move, which will see Nvidia and AMD hand over 15% of sales of their H20 and MI308 chips, respectively, seemingly ignores the national security issues and concerns that the US is losing its technological edge, which prompted a move in April to require export licences. The major concession by the US government fits a now-familiar pattern by President Donald Trump’s trade team.

The decision to reopen sales to China drew sharp opposition from security experts and politicians in the US. They highlighted that the restricted access to the H20 was due to its advanced capabilities and fears that it could support China’s military. Meanwhile, China opened an investigation over concerns that the H20 chip includes tracking and positioning features, an accusation Nvidia rejected.