Tech drama just hit peak Silicon Valley weirdness. In a plot twist that sounds more like a Netflix series than actual policy, the U.S. government has cooked up an unprecedented deal with Nvidia and AMD that’s basically a high-stakes financial tango with China.

Imagine this: The U.S. government is now set to pocket 15% of chip sales to China, turning export controls into what one congressman called a “creative taxation scheme”. It’s like your tech overlords are playing global chess, and we’re all just watching the board.

The Chip Diplomacy Backstory

Back in April, the Trump administration pulled the ultimate tech cockblock, halting advanced computer chip sales to China faster than you can say “national security”. But now? They’ve opened a tiny window, allowing Nvidia and AMD to sell their AI chips - with a catch that would make Wall Street blush.

The Money Move

Nvidia CEO Jensen Huang apparently negotiated this deal like he was haggling at a San Francisco farmers market. Originally, the government wanted 20% of sales revenue, but Huang talked them down to 15%. Talk about tech negotiation goals.

The Political Pushback

Not everyone’s thrilled about this arrangement. Both Republican and Democratic representatives are side-eyeing the deal, calling it a potential national security risk. Rep. Raja Krishnamoorthi dropped the mic with his quote: “Chip export controls aren’t bargaining chips, and they’re not casino chips either”.

In true Silicon Valley fashion, this deal is equal parts brilliant and bonkers - proving once again that in the world of tech and geopolitics, truth is definitely stranger than fiction.