Big Take Asia Why Trump Is Letting Nvidia Sell (Some) AI Chips to China
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Aug 14, 2025 Joe Deaux, Bloomberg's economic statecraft reporter, sheds light on the surprising agreement allowing Nvidia and AMD to sell some AI chips to China. He discusses the intricate deal that requires companies to pay 15% of their revenue to the U.S. government, highlighting the blend of national security concerns and business interests. Deaux explains how this move reflects Trump's unique approach to trade, balancing competitiveness with geopolitical tensions in the semiconductor sector. Tune in to discover the implications for U.S.-China relations and the tech industry.
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Unprecedented Revenue-for-Access Chip Deal
- The Trump administration allowed NVIDIA and AMD to sell lower-tier AI chips to China while taking 15% of revenue as a tradeoff.
- This marks a major shift from prior U.S. policy that blocked advanced chip exports for national security reasons.
Pay-To-Play Raises Legal And Normative Questions
- Observers call the pay-to-play aspect unprecedented and legally questionable.
- The move reflects the Trump administration's broader pattern of using policy to generate federal revenue.
Carve-Out Targets Lower-Tier Models
- The carve-out applies to lower-tier chips like NVIDIA's H20 and AMD's MI308, not top-of-the-line Blackwell chips.
- Trump hinted he might allow less advanced Blackwell versions later, signaling further loosening.