Artificial Intelligence: Nvidia and AMD to Pay Washington 15% of Revenue from Chip Sales in China

Nvidia CEO Jensen Huang met with US President Donald Trump at the White House on Wednesday and agreed to donate a portion of his revenue to the US government, a highly unusual arrangement in international technology trade, according to reports in the Financial Times, Bloomberg and the New York Times.

Last month, Nvidia, the world's largest semiconductor producer, became the first company to surpass $4 trillion in market capitalization, highlighting the extent to which markets are betting on artificial intelligence, which is revolutionizing the global economy.

The California-based company is at the heart of the technological rivalry between Beijing and Washington. Chinese companies' access to its advanced "H20" chips is a major issue in trade talks between the two powers. But in early July, Nvidia announced that it would resume sales of its H20 chips in China after US authorities lifted some export restrictions to the Asian country.

Silicon Valley-based Advanced Micro Devices (AMD) will also pay 15% of its revenue from sales of its MI308 chips to China, which it was previously banned from exporting to the country. According to the New York Times, the deal could generate more than $2 billion for the U.S. government.