Ownership of data has risen to levels worth billions. Control of the technology generating the information has become a new Cold War. Globalization has encouraged such developments with deep financial gains and political losses. When superpowers challenge each other for dominance over technological advancements, the last thing to expect is a financial agreement.
Who Knows You Owns You
“Nearly every piece of complex equipment — from cars to construction tools to medical devices — can report performance data back to a central server. This enables everything from software updates to predictive maintenance. Remote access and semi-autonomous operation are key to the productivity improvements the tech sector promises. The question is who else can access this data. The more data flows around the world, the more security concerns this will raise” (Miller, Chris, The Financial Times, August 11).
This alone is a concerning point. Investigating loopholes, backdoors, or added surveillance technology is a prime concern for the U.S. and China (Beijing). The technology the U.S. currently uses to search for these is technologically outdated. There is no actual legislation in operation to provide for this coverage.
“US Congress is debating the Chip Security Act, which would mandate the commerce department to explore use of geolocation to crack down on smuggling of restricted AI chips and servers. It would push companies to use location verification and report suspected export control violations” (Miller, Chris, The Financial Times, August 11).
The agreement between Nvidia, AMD, and the U.S. provides a 15% return to the U.S. on all sales to China. This agreement represents a reversal of the opposition from the current administration to allowing Chinese technology to be involved in American goods and services. The chips China currently uses are outdated. This agreement allows for Nvidia’s H20 chip operating on the most advanced Blackwell platform to be sold to China. This is the internal controversy from those familiar with the frontline technology export controls and regulations. The precedent uncovers what could be costly to the U.S., not in economics but in national intelligence and AI technology.
Free Data Giveaway
Recall the TikTok controversy? That matter specifically was more than who owns a company. It’s about the ownership of personal information. Access to this information with no current technology security installed highlights the glaring holes in the administration’s ability to protect American data and information. In addition, access to advanced technology without export controls opens the possibility of national security information infiltration and transmission. If a foreign agent can encode a complex chip, such as those used in AI technology, the chip can transmit information to any designated location.
Telemetry, the broadcasting of usage, temperature, and location indicators, provides useful information. Even this scarce content displays needed updates, usage, response to content, and location of content received/response. This information tracks who, what, where, and why via telemetry. Nvidia and AMD argue the positive use of this information for updates, needed repairs, data management, and efficiency (Miller, Chris, The Financial Times, August 11). The question to ask is “Do you want a company (internal or external) looking at your data, either global or granular?” Taking this point forward, civil rights attorneys would be employed for generations.
Micro To Macro And Back Again
The U.S. government will take a 15% fee on some of Nvidia’s and AMD’s chip sales to China as a condition of granting them export licenses to sell in the country (Axios, August 11).
The chips in question are Nvidia’s H20 and AMD’s MI308, both crucial to AI applications. Both companies have been granted export licenses to China starting on Friday, August 8. Critics have pointed out that Chinese access to these chips opens the door for use in military operations and other highly sensitive areas, including the race for dominance in AI technology.
America is in a silent, subtextual race for AI prominence. The main opponent is China. This agreement between Nvidia and AMD can undermine America’s position in favor of China. An extended concern is that, following this trend for economic gain, the current administration may ease controls over high bandwidth memory chips such as those needed to process high-quality AI. If this were the case, the U.S. would greatly fall short of being a superpower in the AI race (Sevastopulo, Demetri, Michael Acton, The Financial Times, August 10).
While export controls for sensitive products are nothing new, charging a company 15% of its revenue to sell a particular product to a particular country is unprecedented. To gain an idea of the amount of money in question, analysts point to the sales of Nvidia’s H20 chip to China starting in 2025 would have sold 15 million chips, producing $23 billion (Sevastopulo, Demetri, Michael Acton, The Financial Times, August 10).
How Much Does It Mean To You?
What does the China-Nvidia/AMD agreement with the current administration mean (in the broadest sense)? Unprecedented might be too simple a term. Focusing specifically on AI technology, chip sales to China, which is the focus of this matter, escalates national security as well as global prominence in AI technology.
Can You Do That?
“[A] dangerous misuse of export controls.” “Pay-offs aren’t supposed to be a pre-condition for foreign commerce.” “What legal authority [does the government have] for extracting revenue-sharing as a condition for export licenses?” “[This is a] wild deal [that is] unclear if it was legal given the constitution’s export clause bans taxes or duties on exports.” (qtd in The Financial Times, August 11).
These quotes summarize the internal concerns from intelligence officials and lawmakers on the matter. The legality of the arrangement between the U.S., Nvidia, and AMD is currently uncertain. Possible legal mechanisms have yet to be fully reviewed, given the early nature of this agreement, on Friday, August 8.
Make America Smart? Again?
Boiled down to the core point, this agreement allows sales of high-powered chips for AI technology advancement to a foreign agent. The U.S. is gaining money from access to the U.S. technology market. Is America being pimped out by the current administration? Would this be economic slavery? American consumers are being “sold” to China by way of dependence on the technology from Nvidia and AMD. If there’s an intent to Make America Smart Again, American consumers are dummies in this context. Perhaps that’s the plan.
If the American consumer market is forced to use, therefore purchase, technology built by Nvidia and AMD, the money coming back from these agreements, 15% of total sales to China, goes to the current administration. Consumers don’t see this money; they see higher price tags, and they are forced to pay or do without. The win is for the administration (financially) and China (technologically). The loss goes to the consumer, without an alternative. Added to this is the elevated potential for American data to be accessed and sold globally. All at a price the government sees coming through, yet at the expense of consumer use.
Who is making America Smart? Again, it’s the bait and switch of the current administration. Holding all the cards, the smart one in this phrase is the administration, knowing how to leverage international business with a captive audience. Well done.
Alan Lechusza Aquallo
alan lechusza aquallo 
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