AMD Faces Setback in Selling AI Chip Geared for Chinese Market
U.S. Officials Reject AMD’s AI Chip for Chinese Market
Advanced Micro Devices Inc’s plan to launch an artificial intelligence chip customized for Chinese markets hit a roadblock as U.S. officials declined approval, according to a recent report by Bloomberg. Despite designing a less potent chip to comply with U.S. export laws, authorities deemed it too powerful for sale in China. AMD was advised to secure a license from the Department of Commerce’s Bureau of Industry and Security for chip sales.
Stricter Export Restrictions on AI Technology to China
In 2023, the U.S. reinforced restrictions on exporting crucial AI-related technology to China to restrict Beijing’s access to advanced technology vital for AI development and applications. These measures were introduced by President Joe Biden in 2022 to prevent Beijing from utilizing AI for military purposes.
NVIDIA and AMD’s Efforts in the Chinese Market
Notably, NVIDIA Corporation is also navigating the approval process for a less potent chip aimed at Chinese markets. While AMD has had limited presence in China, it has recently intensified efforts to gain a foothold in the region. However, major Chinese AI players like Tencent Holdings Ltd and Baidu Inc have indicated they possess sufficient Nvidia chips to sustain their AI projects for up to two years.
Overall, the regulatory challenges faced by AMD in entering the Chinese AI market underscore the complexity of navigating international trade regulations amidst increasing geopolitical tensions.
