Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), two of the world’s leading semiconductor companies, have agreed to an extraordinary deal with the Trump administration, committing to pay 15% of their China chip sales revenue to the U.S. government to secure export licenses.
This arrangement, reported by the Financial Times, marks an historic first, as no U.S. company has previously agreed to share revenue to obtain such permissions.
While this opens a lucrative revenue stream, the agreement raises serious concerns about government overreach, resembling a pay-to-play scheme or even extortion.
This post appeared first on 24/7 Wall St.