Trump’s AI Chip Tariff: NVIDIA and AMD’s Entry Fee for the Chinese Market

Sure thing, let’s dive into this wild world of chip sales and international deals. So, here’s the scene: NVIDIA and their AI GPUs getting tossed around with a bit of international drama. US says no, then yes, then maybe, but they finally lift the ban on those fancy H20 chips going to China. Happened mid-July, this year, right? Super recent stuff.

Fast forward to August 10th—just your average Sunday. The Financial Times drops some hot news. NVIDIA and AMD are apparently ready to fork over 15% of their China sales to Uncle Sam as a “thank you” for letting them sell those AI boosters. I mean, when did selling tech become as complex as a spy thriller?

Now, you might think, “Is this a regular thing?” Nope. Super unusual. NVIDIA and AMD are on this all-or-nothing mission for those export licenses. Spoiler: They need them if they want to keep their cash flow from drying up in the massive Chinese market. Talk about pressure.

Anyway—ah, yeah—so these licenses? Magically appeared last week, probably after NVIDIA’s CEO, Jensen Huang, had a tête-à-tête with President Trump. Bit of a power move maybe? They struck a deal over this 15% cut—let’s just hope it doesn’t set off international chaos.

Hold up, Trump had a little presser too. Said the H20 isn’t up to par—to put it politely—but still wants a cut of the pie. Hilarious how the H20 is still drawing crowds in China, despite its so-called “obsolescence.” There were rumors (or actual reports, who even knows) that anyone could see NVIDIA scrambling for 300,000 more of these chips. Insatiable demand, apparently.

And then there’s talk of this new chip, the B200, designed from some next-gen Blackwell tech. Yet, there’s Trump ready to negotiate it down to some less potent version. Why? No clue. Politics is a tangled web, isn’t it?

NVIDIA’s playing it safe, giving the same corporate spiel—play by the rules, hope to lead the world in AI tech, all that jazz. Doesn’t erase the feeling that this, whatever it is, might be Pandora’s box for future deals. You think I’m exaggerating? Not a chance.

Of course, there are some lawmakers out there scratching their heads. Congressman Raja Krishnamoorthi was not amused. He pointed out some serious red flags about national security and called out the odd financial arrangement—like, aren’t export controls supposed to be more about safety than profit? Seems like Hollywood’s got nothing on DC drama.

Anyway, watch the space. Who knows, maybe next month, this 15% deal could evolve—or vanish. Both sound pretty wild to me.