The United States has agreed to allow Nvidia and AMD to sell high-performance AI chips to China. This decision comes with special export licenses and a profit-sharing agreement between the companies and the U.S. government.
What This Means
High-end AI chips are used to train and run large artificial intelligence models. China has been restricted from buying these chips because of U.S. export controls. Now:
-
Nvidia and AMD can legally sell some AI chips to Chinese companies.
-
The deal includes a 15% profit-sharing rule with the U.S. government.
-
This helps AI companies in both the U.S. and China continue research and development.
You can read more about Nvidia’s AI chips on Nvidia’s official site.
Why This Deal Matters
AI technology is growing fast. Both countries want to lead in AI research.
-
Before, China had to rely on slower or older chips.
-
Now, companies like DeepSeek in China can get high-end chips legally.
-
U.S. companies like Nvidia and AMD can profit from a bigger market.
This is a bullish sign for AI tech stocks, according to Wedbush analysts.
Global AI Supply Chain Impact
AI chips are mostly made in the U.S., Taiwan, and South Korea. Export restrictions had slowed down AI growth in China. This deal:
-
Reduces the risk of illegal chip purchases or smuggling
-
Encourages collaboration between U.S. and Chinese AI companies
-
Stabilizes prices for AI hardware globally
Companies Benefiting
-
Nvidia: Can sell its H100 and A100 chips for training AI models.
-
AMD: Can export MI300 chips for large AI data centers.
-
Chinese AI firms: Gain access to faster AI chips without legal risks.
You can see a full overview of AMD’s AI products on AMD Official Website.
Challenges and Risks
-
Some U.S. policymakers are concerned about national security.
-
There could be limits on sensitive AI applications in China.
-
Profit-sharing with the U.S. government ensures monitoring and compliance.
Future Outlook
This agreement shows that global AI technology is interconnected. It may:
-
Encourage more AI research in China
-
Strengthen U.S. chip companies financially
-
Influence other countries to reconsider AI export policies
Quick Summary Table
| Company | Chips | Export Permission | Notes |
|---|---|---|---|
| Nvidia | H100, A100 | Yes | Must follow licenses |
| AMD | MI300 | Yes | Export to China allowed |
| U.S. Government | — | Oversees licenses | 15% profit-sharing |
Outbound Links Used