Where will the 15% go?
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Remarkable.
Chip giants Nvidia and AMD have agreed to pay the US government 15% of Chinese revenues as part of an "unprecedented" deal to secure export licences to China, the BBC has been told.
The US had previously banned the sale of powerful chips used in areas like artificial intelligence (AI) to China under export controls usually related to national security concerns.
Security experts, including some who served during President Donald Trump's first term, recently wrote to the administration expressing "deep concern" that Nvidia's H20 chip was "a potent accelerator" of China's AI capabilities.
Nvidia told the BBC: "We follow rules the US government sets for our participation in worldwide markets."
It added: "While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide."
AMD did not immediately respond to a request for comment. The White House declined to comment.
The deal sparked surprise and concern in the US, where critics said it raised security risks and questions about the Trump administration's approach to dealing with private businesses.
"You either have a national security problem or you don't," said Deborah Elms, head of trade policy at the Hinrich Foundation.
"If you have a 15% payment, it doesn't somehow eliminate the national security issue," she added.
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ArtI.S9.C5.1 Prohibition on Taxes on Exports
Article I, Section 9, Clause 5:No Tax or Duty shall be laid on Articles exported from any State.
The plain language of the Constitution will certainly not discourage Trump, or the "originalists" on his court who justify every Constitutional outrage he initiates.
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I wonder if he's familiar with the Constitutional prohibition.
Mark Cuban said on Monday that it's a good move to have Nvidia and AMD pay the US government 15% of their China chip sales revenues.
"This is a 'billionaire's tax' structured as a royalty or sales tax on semiconductors from the most valuable company in the world, sold to China," Cuban wrote on X, after the Financial Times first reported that President Donald Trump had imposed the requirement on the two chipmakers.
Cuban — who spent the 2024 election campaigning for Vice President Kamala Harris — said Trump deserves praise if the government does get a cut from Nvidia and AMD's China chip sales.
"Everyone knows how I feel about POTUS, but he doesn't get everything wrong," Cuban said on Monday, referencing his past criticisms of Trump's tariff policies.
"Will this make up for the explosion of the deficits we face? Not as it stands now. Not close. But give him credit for knowing how those CEOs approach problems and opportunities, and using his leverage to generate tax revenues," Cuban added.
https://finance.yahoo.com/news/mark-cuban-lauding-trump-potus-070045505.html
