In unusual moves, America to cut AI chips sold to China

As part of a highly unusual financial agreement with the Trump administration, NVIDIA and Advanced micro devices are expected to pay 15% of the US funds from selling artificial intelligence chips to China.The deal, which was familiar with the agreement described by three people, came an anonymous speech, NVidia comes a month after receiving permission to sell China to a version of its artificial intelligence chips. While the Trump administration publicly stated a month ago that it was giving green bite to Nvidia to sell the AI chip called H20 to China, it did not really issue those licenses that make them possible. The deal can make the US government a funnel of over $ 2 billion.President Trump confirmed the terms of unusual arrangements at Monday’s press conference, while given that he originally wanted 20% of the sale revenue when NVidia asked China to sell “obsolete” H20 chip. The President credited NVidia CEO Jensen Huang for negotiating up to 15%. “So we interacted on a small deal. So he is selling an essentially old chip,” said Trump.Last week, Jensen Huang, CEO of NVidia, met with President Trump at the White House and agreed to give his 15% deduction to the federal government, essentially Federal Gav was made a partner in the business of NVidia in China, people said to the people familiar with the deal. The Department of Commerce started licensing for the sale of AI chip two days later, these people said. Although Huang has led to conversation with the White House, NVidia is not the only company that sells AI chips to China. AMD has an AI chip called MI308 and in April the Trump government also banned the sale of Chinese.There are some examples for the Department of Commerce that agrees to give license to export in exchange for a part of revenue. But unconventional payments are in line with Trump’s interventionist role in international deals associated with American firms.