Trump defends taking 15% cut of Nvidia, AMD chip sales to China | Latest Tech News
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President Donald Trump defended his controversial deal requiring Nvidia and AMD to fork over 15% of their China sales income to the US authorities to skirt export controls — insisting the pc chips concerned are outdated technology.
“No, this is an old chip that China already has,” Trump said Monday, referring to Nvidia’s H20 processor, including that “China already has it in a different form, different name, but they have it.”
The president emphasised that America’s most superior chips stay off-limits to China, describing Nvidia’s latest Blackwell processor as “super, super advanced” technology that “nobody has” and gained’t have “for five years.”
President Donald Trump defended his controversial deal requiring Nvidia and AMD to share 15% of their China sales income with the US authorities. AP
The two tech firms agreed to the deal under an association to acquire export licenses for their semiconductors.
Trump on Monday painted himself as a powerful negotiator who extracted cost for access to the Chinese market while defending America’s technological edge.
He described his negotiations with Nvidia CEO Jensen Huang as a back-and-forth over percentages.
Trump initially wished 20% of the sales money, but Huang talked him down to 15%, according to the president.
“And he said, ‘Will you make it 15?’ So we negotiated a little deal,” Trump recounted.
The president repeatedly careworn that the H20 chips are primarily out of date.
Trump initially wished 20% of the sales money, but Nvidia CEO Jensen Huang (pictured) talked him down to 15%, according to the president. AFP via Getty Images
“It’s one of those things. But it still has a market,” he explained, suggesting China may simply get related technology elsewhere, including from their own company Huawei.
Its’ Blackwell chip, meanwhile, delivers two-to-four instances the efficiency of earlier generations of graphics processing models (GPUs) with over 208 billion transistors and cutting-edge AI capabilities.
The US had beforehand blocked firms from promoting sure chips to China, fearful that superior technology may help China compete with America in areas like artificial intelligence.
Nvidia’s emblem is seen displayed on the company’s Blackwell GPU chip — an superior processor that gained’t be offered to China, according to Trump. Bloomberg via Getty Images
Trump was adamant about retaining the best technology for America.
Regarding the superior Blackwell chip, he said, “I wouldn’t make a deal with that, although it’s possible I’d make a deal … 30% to 50% off of it.”
He in contrast the deal with Nvidia and AMD over its MI308 chips to how America sells fighter jets to other nations but retains the best options for itself.
“We will sometimes sell fighter jets to a country and we’ll give them 20% less than we have,” he explained.
AMD’s stock price jumped more than 2% Monday, while Nvidia shares climbed modestly.
Investors determine that retaining 85% of the money from China sales beats not making any money, which is what these firms have been trying at.
AMD, another chipmaker, will also share proceeds of its sales to China with the US authorities. REUTERS
Trump framed the deal as placing America first, insisting the money goes to the nation, not him personally.
“When I say I want 20 (percent), I want for the country. I only care about the country. I don’t care about myself,” he said, defending against any suggestion of personal benefit.
China isn’t thrilled about the association. Their state-run newspaper called out America for utilizing “economic leverage” after initially claiming the export bans have been about security.
Meanwhile, Chinese officers have been questioning whether or not American chips may need secret “backdoors” that may let somebody spy on them – accusations Nvidia firmly denies.
“We follow rules the US government sets for our participation in worldwide markets,” an Nvidia spokesperson told The Post.
“While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”
The company warned that “America cannot repeat 5G and lose telecommunication leadership.”
“America’s AI tech stack can be the world’s standard if we race,” the spokesperson added.
The Post has sought remark from AMD and the Chinese authorities.
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