News Nvidia and AMD reportedly sharing 15% of their China GPU revenue in exchange for export licenses — 'unprecedented' export revenue sharing deal may...

[Admin]

Nvidia and AMD have reportedly agreed to pay the U.S. government 15% of China-sourced revenues to unlock export licenses for previously restricted chips.

Nvidia and AMD reportedly sharing 15% of their China GPU revenue in exchange for export licenses — 'unprecedented' export revenue sharing deal may... : Read more

 

[pug_s]

Sounds like extortion to me.

 

[Itsahobby]

This self imposing tariff is not a tax, but a payout only? As trump said, tariffs are paid by the exporting countries. Nuts.

 

[King_V]

Sounds like a . . bribe?

And the recipient of this 15% would be . . ??

 

[John Nemesh]

This is extortion. Flat out. ILLEGAL extortion, not that it matters when the extortionist owns the DOJ and FBI...

 

[TerryLaze]

15% of revenue even, not their income, that gotta hurt.

 

[bit_user]

Tariffs are import duties, while these are export duties. That's interesting. I wonder how common those are, throughout the world.

I can think of some reasons to levy such duties, but the main argument I see in this case would just to make the hardware more expensive for Chinese customers. Perhaps that's seen as an added barrier that, when you stack it on top of limiting the specs of the hardware, would further hamper China's access to AI hardware?

 

[Charogne]

If I get it correctly, Trump is ok to trade US national security in exchange for money?

 

[JTWrenn]

This self imposing tariff is not a tax, but a payout only? As trump said, tariffs are paid by the exporting countries. Nuts.

Sorry but it's a tax.

"a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions."

Nvidia was forced to do this. They didn't volunteer a donation. It's also a targeted tax so that is even worse. This can't be done by the president it has to go through congress.

All that said it is better than a tariff, but still a breaking of the separation of powers. We need to have a strong congress that splits up these powers so we don't have an autocracy simply because it has a lower, not zero, chance of breaking our system. Infighting helps so down the march of fascism.

I think the whole thing is too late, and the unintended consequences of all of it keep rolling. China now doesn't trust there are not kill switches...or at least that is their line. They were forced to bring up their own chips, and they are good enough for them to get by without funding us. We shot ourselves in the foot every step of this.

 

[King_V]

If I get it correctly, Trump is ok to trade US national security in exchange for money?

For money. For gaudy personal gifts. For flattery. The list goes on.