Remember when the U.S.–China chip drama was all about “national security”?
Yeah… scrap that. We’ve officially entered the “sure, you can sell — just cut us in” era.
Here’s the play:
Nvidia + AMD just agreed to hand over 15% of their China AI-chip revenue to Uncle Sam. (aka The U.S. government)
In exchange? They get the golden ticket — that’s licenses to keep selling their hottest chips in China.
And when we say “hottest chips”: For Nvidia, the toll is on its H20 chips. For AMD, it’s the MI308s.
How we got here again?
First, the Trump administration slammed the brakes on certain AI chip sales to China.
Then Nvidia went, “Okay, how about $500B in U.S. data-center investments?” — and suddenly the ban got a little… softer
By July, Nvidia was back with the H20 — custom-built to shimmy past Biden-era export rules.
But here’s the twist: The Commerce Department says this move is tied to bigger trade talks with China — especially over rare-earth minerals (aka the secret sauce for EV batteries).
The reactions so far? Well not everyone’s cheering. National security folks are calling foul and want the deal scrapped. But let’s be real — when it’s a political and economic win, walking away isn’t exactly the go-to move.
The Bottom line:
Chips are still a power game — but now it’s part tech, part geopolitics, and straight-up revenue sharing.
Basically, the AI chip race just went from “keep out” to “pay up.
Here’s the full report.
