Big Take Why Trump Is Letting Nvidia Sell (Some) AI Chips to China
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Aug 14, 2025 Joe Deaux, a Bloomberg economic statecraft reporter, dives into an unusual deal allowing Nvidia and AMD to sell AI chips to China. He discusses how the U.S. government has mandated a 15% revenue share, blending national security with corporate profit. Deaux reveals the complexities of Trump's influence over trade dynamics, illustrating the tension between innovation and security. The conversation raises intriguing questions about future trade negotiations and the implications of such unprecedented arrangements on the global tech landscape.
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Government Takes Cut To Relax Chip Controls
- The Trump administration allowed NVIDIA and AMD to sell some lower-tier AI chips to China while taking 15% of revenue.
- That deal marks a novel trade-off between national-security controls and revenue capture by government.
Carve-Out Limits To Lower-Tier Chips
- The carve-out applies to less-advanced models like NVIDIA's H20 and AMD's MI308, not top-end Blackwell chips.
- Officials framed these models as less threatening to national security while leaving future exceptions possible.
Security Versus Market Access Tension
- The deal reflects tension between U.S. dominance in AI chips and hawkish national-security concerns about China.
- Policymakers worry China could leverage advanced chips for military and cyber capabilities if controls loosen too far.