Nvidia and AMD have agreed to a fee structure concerning their AI chips, specifically the H20 and MI308 models. The U.S. government figures prominently, although the deployment of the fees collected remains unclear. Nvidia highlighted concerns about past export restrictions affecting sales to China, which cost the company significantly. There is notable demand in China for Nvidia's H20 chips, prompting the company to order hundreds of thousands more from TSMC to meet this demand.
The deal applies specifically to Nvidia's H20 chip and AMD's MI308, both crucial to AI applications, the FT added.
Chinese customers are expected to rush in to buy Nvidia H20s in the face of pent-up demand.
The company has said being blocked from selling the chip to China cost it $4.5 billion in one quarter alone.
Nvidia stated, 'We follow rules the U.S. government sets for our participation in worldwide markets.'
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