Chipmakers Pay to Play: Is This a New Era of Tech Bribery?

In a move that could change the game for American tech companies, Nvidia and Advanced Micro Devices have made a curious deal with the Trump administration. They will receive export licenses for certain chips to China—but there’s a catch. The companies must pay a whopping 15 percent of their revenues, a tactic that raises eyebrows and questions about legality. I mean, who knew selling technology required a “cut” to the government, like some sort of corporate mob scene?

This arrangement follows Nvidia CEO Jensen Huang’s meeting with President Trump about stricter export controls that have been limiting their sales to China since 2022. These restrictions impact potential revenue significantly—$23 billion before the audit, to be precise. Yet, here’s the kicker: critics argue that this “tax” on profits feels more like a shakedown than a legitimate business deal. Is this the new normal in tech? It certainly sounds like a scene straight out of a sequel to “The Godfather,” but with semiconductors instead of family ties.

Experts like former trade official Christopher Padilla are calling the agreement a dangerous precedent. If that’s not enough to make anyone pause, think about the broader implications; if companies have to pay for permission to sell their products, what’s next? We already have a landscape riddled with red tape, so brace yourself—this could get messy. What are your thoughts on tech companies and government deals like this?

As companies flirt with these strange agreements, it makes one wonder: are we looking at a new trend of tech governments looking for a slice of the pie, or just a one-off deal that proves to be a misstep? Either way, the ramifications of this arrangement are sure to keep us talking for a long time to come.

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