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US-China AI Chip Deal Sparks National Security Scrutiny

The Trump administration will allow Nvidia and AMD to sell older chips to China in exchange for a 15% revenue share.

Olivia Sharp 1 min read 526 views
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The Trump administration's deal allowing Nvidia and AMD to sell older AI chips to China for a 15% revenue cut drew sharp criticism on Aug. 13, 2025, over national security risks.

An Unprecedented Arrangement

The Trump administration on Aug. 13, 2025, announced a controversial deal permitting chipmakers Nvidia and Advanced Micro Devices to sell older-generation artificial intelligence chips to China. In a significant departure from previous policy, the agreement requires the companies to give the U.S. government a 15% share of the revenue from these sales. The policy reverses years of export controls designed to prevent China from acquiring advanced semiconductors.

President Trump defended the deal, stating the chips in question, such as Nvidia's H20, are "old" and that China already possesses similar technology. The arrangement represents a major shift …

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