Advanced Micro Devices Inc (AMD) hit a US government roadblock in attempting to sell an artificial intelligence (AI) chip tailored for the Chinese market, people familiar with the matter said, part of Washington’s crackdown on the export of advanced technologies to the country.
AMD had hoped to gain a green light from the US Department of Commerce to sell the AI processor to Chinese customers, said the people, who asked not to be identified because the situation is private.
The chip has lower performance than what AMD sells outside of China and was designed to meet US export restrictions, they said.
Photo: Reuters
However, US officials told AMD that the chip was still too powerful and that the company must obtain a license from the department’s Bureau of Industry and Security to sell it, the people said.
AMD did not have an immediate comment, while the bureau declined to comment.
It was not yet clear whether AMD is applying for a license.
US President Joe Biden’s administration in 2022 unveiled an initial set of export controls and bolstered them in October last year to include more technology and curb sales to intermediary nations that might undermine the ban.
The tighter controls prevented Nvidia Corp and AMD from selling their most powerful AI chips to China, forcing them to find workarounds.
Nvidia immediately responded with a reduced-performance modified model, whereas AMD has not publicly discussed its efforts to develop a new AI processor for the country.
AMD had less of a foothold in the Chinese AI chip industry than Nvidia, which had a large share of that market prior to the ban.
However, AMD is now going after the AI chip market more aggressively after launching a new MI300 lineup in December last year that is to challenge processors from Nvidia.
The China-tailored product has been referred to as MI309, the people said.
It was not clear which Chinese customer was trying to buy the AMD AI chips. That factor could influence whether the company is able to secure a license, should the chipmaker move forward.
Leading Chinese tech firms, including Tencent Holdings Ltd (騰訊) and Baidu Inc (百度), have said they have stockpiled enough powerful chips from Nvidia — the types that are now subject to US controls — to advance their chatbots’ capabilities for another year or two.
Meanwhile, Huawei Technologies Co (華為) is developing its own AI semiconductors and chipmaking capability that could eventually help Chinese companies fill the gap created by the US ban.
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