Nvidia struck a surprising deal after convincing the president that H20 chips aren’t a national security risk. But whether the reversal is good or bad depends on who you ask.

If Nvidia and AMD are given special treatment…why shouldn't other companies be doing the same?” says one expert.

The latest move risks creating a pay-for-play framework for the sale of sensitive technologies to U.S. adversaries, according to analysts and legal experts.

Senators mainly cite the national security concerns of sending AI tech to China, but also note that the US Constitution says, 'No Tax or Duty shall be laid on Articles exported from any State.'

Nvidia and AMD agreed to share 15% of their revenues from chip sales to China with the U.S. government, a U.S. government official has confirmed.

The US has sought to maintain its sovereignty in AI, citing national security concerns and financial motivations.

Nvidia and AMD have reportedly agreed to give the U.S. government 15% of their revenue from sales of their respective artificial intelligence (AI) data center chips designed for the China market in exchange for obtaining export licenses. Nvidia's H20 AI chip situation is not ideal, but it's significantly better than having no H20 sales.