A debate about whether AI chipmakers can sell their products in China has taken a surprising turn. The US government has apparently granted NVIDIA and Advanced Micro Devices permission to sell their products in China, but with one major catch: 15% of the sales. The Financial Timesand first reported the news, citing multiple sources familiar with the deal.
NVIDIA announced in July that the US government had approved export licenses for its H20 AI graphics cards after blocking their sales in April. NVIDIA developed these specific chips, which are less powerful that those sold in the US, in response to restrictions placed on sales to China. It had previously developed the A800 & H800 chips for China, but these were also banned.
NVIDIA and AMP both received export licenses to China last week after agreeing 15 percent of their profits. AMP will contribute the share of sales from its MI308 chips.
There is a heated debate about whether selling AI chips in China will compromise US national security. Matt Pottinger, President Trump’s former deputy National Security Advisor, and 20 other national security experts, including former government officials, wrote a letter stating this to Howard Lutnick, the US Secretary for Commerce, at the end of July.
Signatories “believe this move represents a strategic misstep that endangers the United States’ economic and military edge in artificial intelligence.” They are concerned that it will limit the number of chips for the US, and also be used by China’s army. NVIDIA disagrees and claims that the export licenses allow it to compete against Chinese businesses.
