AMD and NVIDIA will have to give the US 15% of gpus revenues for IAl sold in China

After months of negotiation and uncertainties, both NVIDIA and AMD should receive US government licenses to resume sales of artificial intelligence -focused GPUs to China. According to the Financial Times, this only happened because Both agreed to give the country’s government 15% of the revenues generated by hardware sales.

The site states that the “tax” will be charged especially from the NVIDIA and M308 H20 models of AMD, which has proven many important for corporations’ financial results. The two have also been the subject of controversy, and would be used by the Chinese government to train models that endanger US national security.

“If this report is correct, he suggests that the administration is exchanging the protection of national security for revenues for the Treasury”Reuters Alasdair Phillips-Robins told Reuters, who worked for the Administration of Joe Biden. Already Geoff Gertz of the Center of New American Security, explains that the situation is unusual for two reasons.

For him, to release that Nvidia and AMD will sell their GPUS again to China means that the alleged safety risks were not as serious when the announced – and therefore the rate makes no sense. At the same time, if these problems really exist, hardware should continue with their blocked sales.

Despite the guarantee that the situation will still be the subject of various discussions and political negotiations, the two affected companies must benefit from the agreement. Before the sale of the H20 model was blocked in China, the local market corresponded to 12.5% of US $ 4.6 billion in revenues that Nvidia registered in the first quarter of this year.

After the restrictions were imposed by the United States government, this amount fell at $ 1 billion in the next quarter. Like this, The company should consider quite reasonable to pay the agreed 15%, given the expected increase in its revenues – that must follow an appreciation of their actions.

To Reuters, Nvidia has stated that “expects export control rules to allow America to comply with China and around the world.” AMD has not officially commented on the matter, nor does it seem to have obtained a license to resume its export activities.

According to Financial Times, while the Trump administration has defined the terms of the agreement, it has not yet provided all the details about it. Like this, It is still uncertain which will be the destination of resources that will be obtained from the new 15% rate on hardware sales.

Fonte: PC Gamer, Reuters