AMD faces obstacles in selling AI chip tailored for China

AMD faces obstacles: Advanced Micro Devices (AMD) has encountered a roadblock from the US government in its endeavours to sell an artificial intelligence (AI) chip specifically designed for the Chinese market. 

The development comes as part of Washington's intensified scrutiny on the export of advanced technologies to China, as reported by Bloomberg News on Monday.

According to sources familiar with the matter cited by Bloomberg, AMD sought approval from the US Commerce Department to market the AI processor in China. 

The chip, intentionally crafted to align with US export restrictions, possesses lower performance capabilities compared to AMD's offerings outside of China.

However, US officials have deemed the processor to still be too potent, asserting that the company must obtain a license from the Commerce Department's Bureau of Industry and Security to proceed with sales in China, as per the report.

At the time of reporting, both AMD and the Commerce Department had not responded to Reuters' request for comment.

The development follows the US's October plans to cease shipments to China of more advanced artificial intelligence chips, including those designed by Nvidia and other manufacturers. 

These measures form part of a broader set of actions aimed at impeding Beijing's access to cutting-edge US technologies, particularly to bolster its military capabilities.

(With Reuters Inputs)