NVIDIA may give US government a cut of its profits to sell AI chips to China

The US government has reportedly given NVIDIA and Advanced Micro Devices (AMD) permission to sell their AI chips to China, but with a catch: the companies must give the government 15% of their profits from these sales. This decision has sparked significant debate over the potential national security implications of allowing AI chip sales to China. The article notes that NVIDIA had previously developed AI chips specifically for the Chinese market, but they were banned by the US government. Now, NVIDIA and AMD have been granted export licenses for their newer chip models, but only after agreeing to the 15% profit-sharing arrangement. Critics argue that this move could endanger the US's technological and military edge in AI, as it could restrict the number of chips available for domestic use and potentially aid China's military. However, NVIDIA claims the export licenses will allow it to better compete with Chinese businesses. The article presents a concise summary of the key facts and highlights the ongoing debate surrounding the US government's decision to allow these AI chip sales to China, with the condition of a 15% profit share.