Nvidia and AMD 15% Revenue Cut Deal Could Spark Global Trade War

Nvidia  and AMD have agreed to give the U.S. government 15% share of revenues from certain chips sold in China, the Financial Times reported, in an unprecedented arrangement with the White House.

Source: Financial Times

15% Revenue for Export Licenses — Are Nvidia and AMD Bypassing Trump’s 100% Tariff Threat?

In exchange for 15% of revenues from the chip sales, the two chipmakers will receive export licenses to sell Nvidia’s H20 and AMD’s MI308 chips in China, according to the FT. The chip making company’s CEO Jensen Huang met with Trump last week, and in a statement, they told the Financial Times: “We follow rules the U.S. government sets for our participation in worldwide markets.”

Are Nvidia and AMD Bypassing Trump’s 100% Tariff Threat?

Now the question arises is this the new way to skip US Tariff rules for nations? Because last week, Trump had said he would implement a 100% tariff on imports of semiconductors and chips, unless a company was “building in the United States.”

As the news spread, many big companies like Bitmain started to focus on setting up a new production line in Texas or Florida . If companies set up business there, they can avoid US tariffs. This could give a boost to the US economy and new job options will open up for the unemployeds.

The Trump Administration is now negotiating company by company, Is This the Future of Trade Policy?

The company had designed the H20 as a lower-level AI chip specifically for the China market to avoid U.S. export restrictions. In April, the Trump administration banned H20 exports. In June, President Donald Trump reversed the curriculum after meeting Jensen Huang at the White House. But no actual export licenses were granted in the next several weeks.

Source: The Kobeissi Letter

Now Nvidia and AMD news says that they will give 15% of  “Revenue” not “Profit” to obtain the licence for the chips. Isn't it Big? According to The Kobeissi Letter, the trade war is getting a new direction to roll on. This directly indicates that if a nation is not in a state to afford the Trump Tariffs , then they can trade by sharing their revenues. If this is true, both the companies needed to give up 15% of their sales to get rid of the export controls.

Could Revenue-Sharing Deals Replace Tariffs in U.S.–China Tech Relations?

The move for NVIDIA and AMD to allocate a percentage of their China chip sales to the U.S. government raises questions about the geopolitical landscape affecting the tech and crypto sectors. This may have implications for market stability and future strategies.

Will This Deal Push AI-Driven Crypto and Blockchain Into the Mainstream?

This will lead to a broader investment in AI- driven cryptocurrency and blockchain technology. As Bitcoin is surpassing $119,000 creating history and the global Crypto Market cap nearing around $4T signifies a pivotal movement in crypto history.

The unusual agreement between Nvidia and AMD is raising a number of concerns among cryptocurrency users. Will it lead to potential growth and innovation in the digital crypto space? If so then what implication will it hold for a broader adoption and integration of crypto in mainstream finance.

Company’s Stock Climbs After Revenue-Sharing Deal — Is Wall Street Betting on This New Model?

Source: Yahoo Finance

The Nvidia and AMD news boosted the share price of the company. The share closed at 182.74 on August 8 with a slight hike of 1%. The company’s stock hit a record high last week from 179 to 183.