The Trump administration crafted a groundbreaking deal allowing Nvidia and AMD to sell advanced AI chips to China, with a stipulation to pay a 15% cut of their sales to the U.S. government, raising eyebrows about national security and trade legality.
President Trump engaged directly with Nvidia's CEO, Jensen Huang, to negotiate this unprecedented financial arrangement, marking a significant departure in the usual protocols for tech exports.
Concerns surged around the potential risks of transferring sensitive technology to a strategic competitor, with fears of national security vulnerabilities emerging as a focal point of debate.
In a surprising twist, Chinese authorities cautioned local companies against using Nvidia's H20 chips, especially in government projects, amid rising doubts about their safety and advanced capabilities.
The deal has sparked discussions about the U.S.'s competitive edge in the global AI market, with analysts warning of potential repercussions as China aims to strengthen its own semiconductor industry.
As the U.S. government considers extending similar revenue-sharing agreements to other chipmakers, the story underscores a complex and evolving landscape at the intersection of technology, geopolitics, and economic strategy.
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