News Summary

In a significant development, Nvidia and AMD have agreed to share 15% of their revenue from sales to China with the U.S. government. This unprecedented deal allows the chipmakers to obtain export licenses for their H20 and MI308 chips to be sold in the Chinese market, despite previous bans due to national security concerns. The arrangement, confirmed by the White House, reflects a broader strategy by major tech companies to navigate the changing international business landscape under Trump’s administration. This comes as Nvidia CEO Jensen Huang has been actively lobbying for the relaxation of restrictions imposed by the Biden administration. The deal exemplifies a trend where tech giants like Apple have made significant commitments to domestic manufacturing to avoid tariffs, as highlighted by Trump’s recent announcement of a 100% tariff on semiconductor chips unless they are produced in the U.S.