Particle.news
Download on the App Store
34 ARTICLES
·
2w ago

Trump Seals AI Chip Profit-Share Deal, Extends Trade Truce

Treasury Secretary Scott Bessent says proceeds from a 15% levy on China AI chip sales by Nvidia, AMD will pay down U.S. debt under a 90-day trade truce extension

Mark Cuban (left) praised Donald Trump’s (center) deal with Nvidia CEO Jensen Huang (right) requiring the company to share 15% of certain China chip sales with the U.S. government — calling it a “progressive dream” tax, even as critics raise legal and security concerns.
Image
Image

Overview

  • The White House authorized Nvidia and AMD to export downgraded H20 and MI308 AI chips to China in exchange for a 15% cut of related sales revenue.
  • President Trump extended a 90-day suspension of tariff increases with China to maintain momentum in broader trade negotiations.
  • Treasury Secretary Scott Bessent said proceeds from the revenue-sharing arrangement will pay down the U.S. national debt and could serve as a model for other industries.
  • Constitutional and statutory experts warn that conditioning export licenses on a fee resembles an unlawful export tax and may face legal challenges.
  • Lawmakers and security analysts caution that monetizing export controls undermines national-security safeguards, and Beijing has urged firms to curb Nvidia chip purchases amid concerns over potential backdoors.