Chip giants Nvidia and AMD to pay 15% of China revenue to US
Posted by logosuwu@reddit | hardware | View on Reddit | 48 comments
Posted by logosuwu@reddit | hardware | View on Reddit | 48 comments
richerBoomer@reddit
China pays the tariffs right?
RealThanny@reddit
This is virtually a textbook example of racketeering.
If there's a national security concern over these chips being sold into China, then they can't be sold, period. Even if 100% of the revenue comes back to the government. If literal extortion allows the sales to continue, then there are no national security concerns.
windozeFanboi@reddit
Is it too late for me to open a dictionary for "racketeering"... ?
:)
Old_Wallaby_7461@reddit
This is an export tax, specifically banned by the constitution. I wonder if anyone will sue.
advester@reddit
Jokes on you, section 9 is powers denied congress.
Old_Wallaby_7461@reddit
President can't enact any taxes on his own, so
work-school-account@reddit
That's a part of section 9, which was removed from the official copy of the Constitution the US government hosts online.
CleanTumbleweed1094@reddit
“No Tax or Duty shall be laid on Articles exported from any State.”
IANAL, but my guess is they claim these are not actually exported from a state. I’m assuming the chips NVIDIA sells to china never arrive on US soil, but go from TSMC fabs in Taiwan or Samsung fabs in SK to Shenzen.
Or from fab to packaging site in SE Asia then to Shenzen.
I could be wrong though.
chronocapybara@reddit
Guess those chips weren't blocked for national security reasons, just bribery reasons.
jocnews@reddit
They were blocked for national security reasons. Current admin doesn't care about security concerns but does care about bribes and being evil.
TophxSmash@reddit
thats a weird way to tax a corporation.
conquer69@reddit
Also, where is the money going? Does it go with the other tax money or...
Caffdy@reddit
to the deficit created by the tax cuts
duncandun@reddit
Zero recent chance this goes towards any deficit lol
TonalParsnips@reddit
But the republicans told me they would! :(((
Current-Ticket4214@reddit
Probably not. That money will find its way into other corporate pockets before it finds its way to inching down the deficit.
TophxSmash@reddit
it doesnt matter, nobody is gonna stop the fascism. They have free reign to do whatever they want.
SERIVUBSEV@reddit
Clear shift from policy in 3 years.
I remember 2022 it was so much about doing everything to stop China from "making the AI".
Now there is general acceptance that selling the shovels is the main revenue from AI.
Strazdas1@reddit
The point was always to not allow China to have best leading edge chips, not prevent them from making AI. Just ensure they are slower than US in making AI. Which seems to track so far in AI developement.
Satans_shill@reddit
All the top 10 open models are from China, I think they realized the Chinese will do the same to hardware given such a large captive market.
Strazdas1@reddit
the chinese open models are distillations of western ground models. China still hasnt created a competing ground model.
autumn-morning-2085@reddit
Is there any real proof of this with regards to models like DeepSeek or are we just saying things? It is one thing to say OpenAI showed the way (even though fully closed) but I would like to know what exactly is being claimed here when people say they are "distillations".
Strazdas1@reddit
The proof is the models themselves, but DeepSeek never hid the fact that its trained of GPT as they stated that in their original paper.
autumn-morning-2085@reddit
Where does it say that, exactly? Most papers do talk about their competition/inspiration and how they compare. But nowhere do they say they "trained" on them (and how would that even work?).
Strazdas1@reddit
I dont remmeber the exact text, its been a while, but they trained their weights on the GPT API.
Satans_shill@reddit
It is all math, so they are advancements not distillates plus check out any ai published ai paper Chinese nationals will be heavily represented and refrenced.
Strazdas1@reddit
They are distilates, they dont use custom ground model training. This is why they are so cheap to produce. There are plenty of AI nationals that are very capable. I never disputed that. China as a country has not caught up to western AI capabilities is my claim. They might in the future, or they might not, i dont know.
Lighthouse_seek@reddit
The chip restrictions only make sense if you genuinely believe super intelligence is coming soon.
imaginary_num6er@reddit
Meanwhile Intel is still paying the debt for the rights of an asbestos mine
imaginary_num6er@reddit
I wonder if this means raising 15% on prices in China since those chips still sell
Aggrokid@reddit
So after the 15% price bump, it's still the best option for China AI firms? (ignoring smuggling)
Lighthouse_seek@reddit
Given that the fickle administration can still cut off supplies at any time there's still incentive to make their own chips
Strazdas1@reddit
smuggling tends to cost more than 15%, so even with that.
kongweeneverdie@reddit
50% more even it is second hand.
SirActionhaHAA@reddit
With a ban in effect sure but it looks less suspicious to have these chips be in china now with the sales approved, the cost of smuggling is gonna go down because they ain't going to be as secretive about having supplies
Intelligent_Peace_30@reddit
People be like we live in a meritocracy no we live in a kleptocracy.
abbzug@reddit
How has this thread not been locked yet? It's an interesting development I thought we weren't allowed to discuss those.
BlobTheOriginal@reddit
The US just tariffed itself lol
Eyedub9@reddit
Does this mean the chips in question are no longer sanctioned? I'm a little confused.
Mountainking7@reddit
Reverse tariff I guess ...
USPS_Nerd@reddit
Export tax
-Divided_We_Stand@reddit
Reminds me of when people paid protection money to gangsters
Plastic-Meringue6214@reddit
gross as hell, the worst part is that it won't even go towards anything productive. it's just another revenue stream to fund tax cuts on the wealthiest of americans while income inequality is at its highest.
Thercon_Jair@reddit
Exactly this. The world is asked to pay for US billionaires. Probably also leads to more billionaires moving there.
Astigi@reddit
With the rapist tyrant everything is about taking his cut
tapirus-indicus@reddit
Nvidia and AMD sell to travelling salesman Todd Packer
max1001@reddit
I guess there's no more security concerns now that Uncle Sam gets a 15% cut?
AC1colossus@reddit
US Government to sabotage its own high growth area in order to protect industries which cannot realistically compete and make immaterial trade deals that largely represent publicity stunts