Treasury Secretary Scott Bessent announced the Trump administration will collect revenue from artificial intelligence chip sales to reduce national debt. NVIDIA and AMD must pay a 15% commission on their Chinese GPU transactions under the new agreement. Bessent credited President Trump with creating this policy during a Bloomberg interview. The Treasury Secretary emphasized that NVIDIA's H20 represents the only covered product under current regulations. Revenue from these fees will help address America's fiscal obligations.
Bessent defended the arrangement against national security criticisms by noting the H20 chips rank several levels below cutting-edge technology. The administration seeks to prevent Chinese companies from establishing global technology standards through American semiconductors. Chinese officials have expressed concerns about potential tracking systems within NVIDIA products. Bessent interpreted these worries as evidence that American chips might become the dominant standard in Chinese markets. The Treasury Secretary characterized Chinese technology practices as acquiring American innovations through various methods.
Bessent defended the arrangement against national security criticisms by noting the H20 chips rank several levels below cutting-edge technology. The administration seeks to prevent Chinese companies from establishing global technology standards through American semiconductors. Chinese officials have expressed concerns about potential tracking systems within NVIDIA products. Bessent interpreted these worries as evidence that American chips might become the dominant standard in Chinese markets. The Treasury Secretary characterized Chinese technology practices as acquiring American innovations through various methods.
