(VOR News) – According to the media on Sunday, two of the largest semiconductor companies in the United States, Nvidia and Advanced Micro Devices, have reached a deal with the United States government to pay 15 percent of their earnings from the sale of artificial intelligence chips to China.
This agreement was reportedly reached in order to compensate China for its economic development. It has been claimed that this deal was achieved. Jennifer Huang, the Chief Executive Officer of Nvidia, met with Donald Trump, the President of the United States, on Wednesday at the White House.
The meeting was attended by both of them. During the course of their chat, Huang gave his approval for the federal government to receive a percentage of the earnings that the company had produced.
This arrangement is highly exceptional in the context of the global transfer of technology, as stated by publications from the Financial Times, Bloomberg, and the New York Times, amongst others.
It was not possible for the American Foreign Policy Agency to verify the reports as soon as they were received when they were received.
Nvidia hit a new record for market capitalization at $4 trillion.
This represents a significant achievement for the corporation. Nvidia, the most important chip supplier in the world, made history by becoming the first company in the world to reach a market value of $4 trillion over the course of the past month.
This achievement was a huge milestone for the firm. A rising number of investors are of the opinion that artificial intelligence will play a significant role in the transformation of the economy of the entire world.
A trade dispute between China and the United States has put the firm, which has its headquarters in California, in the middle of the battle. On the other hand, the corporation has found itself in the middle of the conflict.
The United States of America and China are currently engaged in a fierce competition for the control of the development of chips that are capable of enabling artificial intelligence.
According to information that has been brought to the notice of the government of the United States, the United States has started to place restrictions on the kinds of semiconductors that Nvidia is allowed to ship to China. Nvidia made the news that the government of the United States has agreed to enabling the company to sell its “H20” chips to the Chinese market within the previous month.
This declaration was made by Nvidia. exclusively built for the Chinese market, the chips in issue are a variant of the technology giant’s processors that have a lower amount of power than the original chips. This variation was designed exclusively for the Chinese market.
However, prior to the meeting that was believed to take place at the location in issue, the Trump administration had not yet granted the permits that would have made it possible for Nvidia to sell the chips.
The Department of Commerce began issuing chip sales permits on Friday.
In addition, Advanced Micro Devices (AMD), which is headquartered in Silicon Valley, would be required to pay fifteen percent of the revenue that it generates from the sale of its MI308 chips manufactured in China.
Because of this, it would be necessary. In the past, the firm was strictly prohibited from exporting these chips to China unless specific conditions were met.
According to a piece that was published in The New York Times, the acquisition has the potential to bring in significantly more than two billion dollars for the government of the United States of America. The action takes place at a time when the administration of President Trump has been undertaking the implementation of tough tariffs with a range of objectives in mind.
These goals include the desire to bring manufacturing back to the United States, the want to rectify trade imbalances in the United States, and the desire to exert pressure on governments in other countries to change their policies. By keeping these objectives in mind, the action has been carried out.
In the week prior to the previous one, a levy of one hundred percent was applied on a wide variety of semiconductor imports. That obligation was put into effect. It should be noted, however, that there were exceptions granted for technical enterprises that made significant investments in the United States of America.
SOURCE: FN
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