In August 2025, US tech giants Nvidia and AMD agreed to share 15% of their AI chip revenues from China with the US government. This unprecedented move raises questions about the future of US-China tech relations, national security, and global AI development. Why are these companies making such deals, and what does it mean for the tech industry? Below, we explore the key questions surrounding this controversial revenue-sharing agreement.
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Why are US firms sharing AI chip revenues with China?
US firms like Nvidia and AMD are sharing a portion of their AI chip revenues from China due to new export license conditions imposed by the US government. This move is part of a broader effort to regulate technology exports amid ongoing tensions and to ensure compliance with US national security policies.
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What does Nvidia and AMD's deal mean for US-China tech relations?
The deal signals a complex shift in US-China tech relations. While it allows US companies to continue selling vital AI chips in China, it also raises concerns about the potential for increased government oversight and the risk of setting a precedent for future restrictions or collaborations.
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Could this impact global AI development and security?
Yes, the revenue-sharing deal could influence global AI progress by affecting how companies collaborate across borders. It also raises security concerns, especially with Chinese state media warning about potential risks like remote shutdown capabilities embedded in chips.
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Is this a sign of easing or escalating tech tensions?
The agreement appears to be a nuanced move—possibly a sign of cautious easing, allowing US firms to operate in China under new rules, but it also underscores ongoing tensions, especially with security concerns and the political backdrop of export controls.
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What are the security concerns related to Nvidia's chips?
Chinese state media have expressed worries about Nvidia's chips, claiming they could have remote shutdown features or other security vulnerabilities. These concerns fuel distrust and justify strict export controls from the US government.
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How might this deal affect future US export policies?
This revenue-sharing arrangement could influence future US export policies by setting a precedent for more flexible or more restrictive controls, depending on how the deal impacts national security and international relations.