US-based semiconductor manufacturers have agreed to cut the US government in on artificial intelligence (AI) chip sales to China, according to several reports.
News on the weekend details that Nvidia and AMD have both agreed to pay 15% of Chinese revenues as part of the deal to lift an earlier ban on the sale of advanced AI chips to China.
Earlier this year, US president Donald Trump extended am earlier ban on Nvidia’s top AI chips to China, to include all AI chips. Last month, the ban on the lesser AI chip, the H20, was lifted.
However, according to reports, licences to export the processor were only issued following a meeting last week between president Trump and Nvidia chief executive Jensen Huang.
AMD is believed to have stuck a similar deal.
The New York Times reports that the 15% arrangement could be worth about $2-billion this year, quoting Bernstein Research that Nvidia expecting to sell more than $15-billion of H20 chips, and AMD tippe to sell $800-million.