U.S. Government to Take Cut of Nvidia and AMD A.I. Chip Sales to China (www.nytimes.com)
from zero@fek.xyz to technology@lemmy.world on 11 Aug 01:20
https://fek.xyz/m/technology@lemmy.world/t/6404

In a highly unusual arrangement with President Trump, the companies are expected to kick 15 percent of what they make in China to the U.S. government.

#technology

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RagingSnarkasm@lemmy.world on 11 Aug 01:30 next collapse

He’s a master of 1-D tic-tac-toe.

MantisToboggon@lazysoci.al on 11 Aug 01:34 next collapse

So taxes?

not_that_guy05@lemmy.world on 11 Aug 01:37 next collapse

Bribe

FerretyFever0@fedia.io on 11 Aug 02:21 next collapse

That is pretty unusual now that I think about it...

zero@fek.xyz on 11 Aug 04:04 collapse

On Wednesday, Jensen Huang, Nvidia’s chief executive, met with President Trump at the White House and agreed to give the federal government its 15 percent cut, essentially making the federal government a partner in Nvidia’s business in China, said the people familiar with the deal. The Commerce Department began granting licenses for A.I. chip sales two days later, these people said.

Sounds very unusual, so Nvidia is giving a kickback to the White House? No matter how I look at it, I can't see how this isn't a conflict of interest. I'm quite certain that someone will say the 15% kickback will be used in R&D etc to stay ahead the competitors but where do you draw the line between revenues and national interest?

Wispy2891@lemmy.world on 11 Aug 06:32 collapse

How the government can use the bribe for R&D?

At most can get a “mom: we have deepseek at home” meme model

LifeInMultipleChoice@lemmy.dbzer0.com on 11 Aug 02:34 next collapse

Taxing individual companies rather than all people/companies. So if the chips are cheaper to make over seas, and servers are cheaper to assemble over seas, and they can get taxed less by existing over seas… why wouldn’t they just move their entire operation over seas at that point.

BrianTheeBiscuiteer@lemmy.world on 11 Aug 04:21 collapse

But taxes don’t come out of the blue, there’s a tax code. This sounds like someone in the Trump admin just negotiated a quid pro quo agreement.

MrNesser@lemmy.world on 11 Aug 06:13 collapse

Same thing happens in poorer countries - you pay a government representative in order to move your goods.

It’s a bribe and the cost of doing business there.

Thedogdrinkscoffee@lemmy.ca on 11 Aug 03:08 collapse

Fuck yo margins bitch.