Trump's Controversial Revenue Share Deal: A New Era for U.S. Chip Exports?

President Trump is contemplating allowing Nvidia to sell less advanced GPU chips in China, although concerns persist about potential military enhancements. A new deal requires Nvidia and AMD to give the U.S. 15% revenue from such exports. Experts express caution over this precedent, its implications, and national security risks.

U.S. President Donald Trump has suggested a potential allowance for Nvidia to sell a scaled-back version of its advanced GPU chip in China, amidst Washington's ongoing concerns about China's use of American AI for military enhancements.

Trump confirmed an agreement ensuring Nvidia and Advanced Micro Devices (AMD) share 15% of their revenues from certain chip sales to China with the U.S. government. This arrangement follows his administration's decision to greenlight exports of less advanced AI chips to China.

Experts have raised red flags on the revenue-sharing deal, questioning its logic and potential precedent. There is apprehension about national security risks and whether the approach might extend to other sectors, with analysts estimating significant financial impacts on Nvidia and AMD.

(With inputs from agencies.)