President Donald Trump confirmed that Nvidia and Advanced Micro Devices (AMD) will pay a fee to the U.S. government in exchange for export licenses to ship vital artificial intelligence (AI) chips to China.
At an Aug. 11 press briefing, Trump told reporters that the tech juggernauts will be charged a 15 percent fee on revenues from their chip sales to China, contingent upon receiving U.S. export licenses.
The arrangement effectively unlocks access to one of the companies’ most critical markets following months of regulatory hurdles.
Trump initially proposed a 20 percent levy on chip exports, but after negotiations with Nvidia CEO Jensen Huang, the two parties settled on a 15 percent agreement, he said. Despite the deal, the president downplayed the Nvidia chip’s significance, calling it “obsolete.”…