Trump Calls Intel CEO ‘Success’ Days After Resignation Demand
trump Negotiated 15% Cut From Nvidia for China Chip Sales, CEO Huang Confirms
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Former President Donald Trump revealed he negotiated a deal with Nvidia CEO Jensen Huang where the chipmaker would provide the U.S.government with a 15% cut in exchange for export control licenses allowing the sale of it’s H20 chip to China and Chinese companies. Huang visited Trump at the white House on Friday to discuss the arrangement.
Trump Details the Deal: From 20% to 15%
Trump stated he initially requested a 20% share of Nvidia’s sales to China as a condition for approving the export licenses. Though, after negotiations with Huang, the percentage was reduced to 15%.
“I said, ‘listen, I want 20% if I’m going to approve this for you, for the country,'” Trump said at a news conference in Washington, D.C.
The H20 chip, while considered an older generation, remains a valuable commodity in the Chinese market. The ability to sell it again represents a meaningful revenue stream for Nvidia. This deal highlights the complex interplay between U.S. national security concerns, export controls, and the economic interests of major tech companies.
intel’s new CEO Faces U.S. Pressure and internal Challenges
The news comes as Intel, a key competitor to Nvidia, navigates its own challenges under new CEO Lip Bu Tan. Tan, who took the helm after Intel struggled to gain ground in the rapidly expanding artificial intelligence (AI) market – a market currently dominated by Nvidia – is facing pressure from the Trump administration.
In a separate demand, President Trump has publicly called for Tan to resign. This pressure adds to the already substantial task of revitalizing Intel, which has also been investing heavily in its foundry buisness – the manufacturing of chips for othre companies - while experiencing cash burn.
Tan’s Background and Early Actions at Intel
Lip Bu Tan, 65, brings a wealth of experience to Intel. Born in Malaysia and raised in Singapore, he earned a master’s degree from the Massachusetts Institute of Technology before joining the semiconductor industry. He acknowledged the difficulties of his first few months as CEO, marked by necessary layoffs and strategic cuts to the foundry division.Tan has already made significant decisions to restructure Intel, including canceling planned manufacturing sites in Germany and Poland and slowing down development in Ohio. “turning the company around will take time and require patience,” Tan told analysts in July. “We have a lot to fix to move the company forward.”
Intel’s Stock Performance and Future Outlook
Despite the challenges, intel shares have seen a modest increase of 3% year-to-date as of Monday’s close, while the S&P 500 has risen 8.4%. the company’s future success hinges on its ability to innovate in the AI space, efficiently manage its foundry business, and navigate the evolving geopolitical landscape – including potential pressure from the U.S. government.- CNBC’s Fred Imbert contributed to this report.
WATCH: President Trump demands Intel CEO resign