Nvidia to pay US 15% of AI chip sales to China: reports

Washington: US semiconductor giants Nvidia and Advanced Micro Devices have agreed to pay the United States government 15 percent of their revenue from...

Washington: US semiconductor giants Nvidia and Advanced Micro Devices have agreed to pay the United States government 15 percent of their revenue from selling artificial intelligence chips to China, according to media reports Sunday.

Nvidia CEO Jensen Huang met with US President Donald Trump at the White House on Wednesday and agreed to give the federal government the cut from its revenues, a highly unusual arrangement in the international tech trade, according to reports in the Financial Times, Bloomberg and New York Times.

AFP was not able to immediately verify the reports.

Investors are betting that AI will transform the global economy, and last month Nvidia -- the world's leading semiconductor producer -- became the first company ever to hit $4 trillion in market value.

The California-based firm has, however, become entangled in trade tensions between China and the United States, which are waging a heated battle for dominance to produce the chips that power AI.