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Nvidia, AMD to pay 15% of China chip sale revenues to US

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Nvidia and AMD have agreed to give the United States (US) government 15% of revenue from sales to China of advanced computer chips like Nvidia’s H20 that are used for artificial intelligence applications, a US official told Reuters on Sunday.

US President Donald Trump’s administration halted sales of H20 chips to China in April, but Nvidia last month announced the US said that it would allow the company to resume sales and it hoped to start deliveries soon.

Another US official said on Friday that the Commerce Department had begun issuing licenses for the sale of H20 chips to China.

When asked if Nvidia had agreed to pay 15% of revenues to the US, a Nvidia spokesperson said in a statement, “We follow rules the US government sets for our participation in worldwide markets.”

The Spokesperson added, “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”

AMD did not respond to a request for comment on the news, which was first reported by the Financial Times earlier on Sunday. The US Department of Commerce did not immediately respond to a request for comment.

–Reuters–