AMD faces a big problem selling an AI chip to China. The U.S. government has informed the major chip company that its chips are too advanced to be sent to China without a license.
Even though AMD tried to adhere to export rules, officials found the chip’s performance surpassed the allowed limits. This decision has raised concerns among investors, leading to a 3% drop in AMD’s trading on Tuesday.
The U.S. government has taken a strong stand on AI technology exports, implementing new rules in October that restricted the export of Nvidia’s A800 and H800 AI chips to China. These restrictions have already affected Nvidia’s China revenues, with a close to 53% drop in its fourth quarter.
Faced with these export regulations, AMD and Nvidia are exploring alternative strategies. Nvidia has begun offering customers in China samples of new AI chips designed specifically for the Chinese market.
Meanwhile, Chinese tech giants like Tencent and Baidu have accumulated powerful Nvidia chips to support their chatbot capabilities, as Huawei is developing its own AI chip.
As the AI technology race intensifies, the U.S. government’s export restrictions are expected to continue shaping the competitive landscape, affecting both domestic and international players.
Also Read: Nvidia Unveils ‘Chat with RTX’ AI Chatbot for local PCs
