U.S. Government To Take Cut of Chip Sales to China

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• 00:03

  Business unusual.

• 00:04

  Two of the world's top chip makers plan to pay the Trump administration a portion of their China sales.

• 00:11

  Plus, an Israeli airstrike kills five journalists from the Al Jazeera network.

• 00:17

  And we'll tell you why division between red and blue states is becoming deeper than ever.

• 00:22

  And it's leading to a sense that America is not a unified country,

• 00:26

  but really two nations, one red and one blue, sharing the same national borders.

• 00:31

  It's Monday, August 11th.

• 00:33

  I'm Azhar Sugri for The Wall Street Journal.

• 00:35

  Here is the AM edition of What's News,

• 00:38

  the top headlines and business stories moving your world today.

• 00:46

  In a pretty unorthodox move for any company,

• 00:49

  NVIDIA and Advanced Micro Devices say they will give the Trump administration a portion of the sales from their artificial intelligence chips to China.

• 00:59

  People familiar with the matter say the administration will receive 15% of the sales as part of a deal to approve exports for NVIDIA's H20 AI chips to China.

• 01:11

  Details of the arrangement are still being worked out,

• 01:14

  but as Asia business editor Peter Landers explains,

• 01:17

  making companies pay to export products is very unusual.

• 01:22

  It's just, from what I can remember,

• 01:24

  an unprecedented case of the government taking a portion of a commercial private sector company's revenue in exchange

• 01:32

  for allowing it to go ahead,

• 01:34

  I suppose.

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