Subscribe to our Newsletter
Foggy Frontier | Est. 2025
© 2025 dpi Media Group. All rights reserved.

Tech Giants' Wild Cash Grab: How Nvidia and AMD Are Playing Silicon Valley Poker with China

people protesting

Photo by Thomas Chan on Unsplash

In a plot twist that sounds more like a tech thriller than a business deal, Nvidia and AMD have just pulled off a jaw-dropping negotiation with the U.S. government. These Silicon Valley giants have agreed to hand over 15% of their chip sales revenue to Uncle Sam, all for the privilege of selling semiconductors to China.

The backstory is pure geopolitical drama. Back in April, the Trump administration slammed the brakes on advanced chip exports to China, citing national security concerns. But now, they’ve struck a deal that’s turning heads faster than a startup’s pivot.

The Art of the Tech Deal

President Trump, never one for subtlety, proudly announced he originally wanted 20% of the sales revenue but negotiated down to 15% with Nvidia’s CEO Jensen Huang. “So we negotiated a little deal,” he casually dropped, as if he was haggling at a flea market instead of orchestrating international tech policy.

The High-Stakes AI Race

This isn’t just about selling chips; it’s about global technological dominance. Nvidia and AMD argue that strict export controls could cost them billions and potentially push other countries closer to China’s AI technology. The subtext? We’re not just trading semiconductors; we’re trading geopolitical influence.

Political Pushback

Not everyone’s buying this creative financial maneuver. Representative Raja Krishnamoorthi bluntly called it a “dangerous misuse of export controls” that undermines national security. Derek Scissors from the American Enterprise Institute went even further, questioning the deal’s constitutionality and warning about potential long-term implications.

In the high-stakes world of tech and international relations, this deal proves that sometimes, business is just another form of poker - and these players are all in.

AUTHOR: kg

SOURCE: NBC Bay Area