US blocks AMD from selling AI chip tailored for China without licence: sources
- The US company had hoped to get Washington’s approval to sell its less powerful MI309 processor to Chinese customers
- AMD had less of a foothold in the Chinese AI chip industry than Nvidia, but AMD is now going after the AI chip market more aggressively
US officials have told Advanced Micro Devices (AMD) that the artificial intelligence (AI) chip it tailored for the Chinese market is too powerful to sell without a licence, ensnaring another American semiconductor company in Washington’s crackdown on exports of advanced technologies.
AMD had hoped to gain a green light from the US Commerce Department to sell the AI processor to Chinese customers since it performs at a lower level than what the company sells outside China, according to people familiar with the situation, who asked not to be identified because the matter is private.
But US officials told AMD it must still obtain a licence from Commerce’s Bureau of Industry and Security to sell it, the people said.
AMD did not have a comment and it is unclear whether the company is seeking a licence. The Bureau of Industry and Security declined to comment. AMD shares were down 2.2 per cent as markets opened in New York on Tuesday.
California rival Nvidia has also been continually downgrading its powerful AI chips destined for China in an attempt to pass muster with US officials – and their ever-tightening restrictions on semiconductors – as Washington seeks to constrain one of its biggest geopolitical rivals.
The US has been working to limit Chinese access to cutting-edge semiconductors that can develop AI models – and the tools used to manufacture those chips – out of fear that Beijing will gain a military edge.