Nvidia and AMD have agreed to pay the US government 15% of their revenues from semiconductor sales to China in exchange for export licenses, an unprecedented quid pro quo arrangement aimed at solidifying America’s AI business dominance while maintaining trade ties with China.

Chip giants Nvidia and AMD have agreed to pay the US government 15% of Chinese revenues as part of an "unprecedented" deal to secure export licences to China, the BBC has been told.

I called some CEOs yesterday to get their thoughts on Nvidia and AMD’s deal to give the U.S. government a 15% cut of AI chip sales to China to secure export licenses. Most were surprisingly sanguine about the unusual arrangement.