In a recent development, U.S. authorities have prohibited AMD’s AI chip sales to China without first acquiring a license.
Artificial intelligence (AI) service development and support companies seem to be facing new obstacles every day as the worldwide race for AI picks up speed.
Leading the way in this industry and amid the ongoing debate surrounding A.I. development, AMD (Advanced Micro Devices), a tech giant, has recently encountered obstacles regarding A.I. chip sales to China.
As per a report, the sale of AMD’s A.I. processor customized for China was prohibited by U.S. authorities because it was excessively potent to be sold without a license.
This exemplifies how another American semiconductor company became entangled in the increased scrutiny that Washington places on the exportation of cutting-edge technologies.
AMD To Be Approved For AI Chip Sales In China
Remarkably, sources with knowledge of the situation assert that AMD was optimistic about receiving approval from the U.S. Commerce Department and was considering offering its A.I. processor to Chinese customers despite its inferior performance compared to its products sold outside of China.
U.S. regulators, however, have mandated that AMD obtain a license from the Bureau of Industry and Security of the Commerce Department before sales of these chips.
This decision received considerable national attention and was consistent with the export restrictions that the Biden administration had previously implemented to restrict China’s access to advanced semiconductor technologies.
Meanwhile, AMD made no statement on the matter, demonstrating an ambiguous position regarding the firm’s imminent intention to pursue a license.
Additionally, a spokesperson for the Bureau of Industry and Security refrained from stating their position.
Meanwhile, AMD shares declined after the disclosure of the announcement.
AMD Rival Nvidia Confronts An Obstacle
AMD’s rivalry with Nvidia, another industry leader, seems to have suffered a setback in the wake of the mentioned AI Chip sale prohibition saga.
The export restrictions imposed on AMD and Nvidia by the Biden administration had a significant impact on the operations of these technology titans across the industry.
AMD has yet to disclose its strategy for complying with the decision of U.S. officials.
However, Nvidia swiftly overcame the obstacle it encountered, by introducing a modified model with diminished performance.
