By Admin 
AI chip maker Nvidia and AMD have agreed to give 15 percent of the profit from the semeconductor chip in China to the US government. According to a BBC report, the agreement is a part of obtaining export license for the world’s second largest economy.
NVIDIA told BBC, we follow the rules made by the US government for our participation in markets around the world. We have not sent our H20 chip to China for months. We hope that the rules made to control exports will help America to keep competitive by China and worldwide. AMD has not said anything on this at the moment.
Export control implemented in Biden’s government
Let us know that in October 2022, the US implemented export control in the administration of Biden. Its purpose was to prevent the access of advanced chip in China to prevent China’s ever -increasing steps towards technology.
The US feared that on these AI chips, China would strengthen the Artificial Intelligence System and also move forward in military technology as AI chips are also used to operate autonomous weapons systems. In such a situation, if the Chinese army becomes strong, then it will create a big challenge for America. Due to this, the US banned the sale of GPU chips like NVIDIA’s H100 and A100 in China.
The company is suffering loss of billions
Due to this ban of America, the company faced an estimated huge loss of $ 5.5 billion at the beginning of the year. The company is also being described as a danger of loss of $ 8 billion in the July quarter. According to sources, NVIDIA CEO Jenson Huang met US President Donald Trump on Wednesday in this connection. In July, China was also informed by the company to apply a license to resume the H20 shipment in July.
Made on this condition
Now, under the deal with the US government, the company will give 15 percent of its revenue to the US government from the sale of H20 chips in China. At the same time, AMD will also give such a part of the revenue from its Mi308 chip. This information has been given in the report of Financial Times.
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