AMD’s AI chip for the Chinese market has reportedly been blocked by US curbs
AMD has reportedly run into a roadblock trying to sell custom AI chips it's made specifically for China.
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The backstory: As artificial intelligence (AI) keeps advancing, the demand for powerful computing solutions is skyrocketing. This is where AI chips come in; they're crucial for running tools like OpenAI's ChatGPT. Companies like Nvidia are major players in this field, and Nvidia's chips, in particular, have been instrumental in pushing AI tech forward. In fact, the company recently hit a major milestone, reaching a market value of US$2 trillion, largely due to its role in the AI sector. But it's not alone in this race, as competitors like AMD and Intel are also stepping up with their own AI-focused chips.
Back in 2022, the US Biden administration put some limits on exporting advanced semiconductor technology to China. Nvidia responded by making modified versions of its AI chips specifically for China that complied with US regulations. But then the US introduced new export restrictions last October targeting cutting-edge chips and tools – specifically curbing their export to Chinese firms and intermediary nations that could help China get around the ban. For instance, Nvidia's A100 and H100 chips were barred from being sent to China and Hong Kong in 2022. The firm then created new chips specifically for the Chinese market, but those were banned in October.
More recently: AMD rolled out its MI300 lineup of chips last December, saying they outshine the competition in speed and capability. The MI300X grabbed the spotlight, drawing interest from heavyweights like Meta, OpenAI and Microsoft.
The development: Now, AMD has reportedly run into a roadblock trying to sell custom AI chips it's made specifically for China. The chipmaker adjusted its chip to meet export rules, but the Commerce Department has said it's still too advanced. According to insiders, US officials told AMD it can't sell the chip, referred to by insiders as MI309, to China without a special license. This adds a new layer of complexity to AMD's plans, especially with stricter tech export controls. It's not clear yet which Chinese customers were looking to purchase the chip or whether AMD will pursue getting a license to sell it in China.
Key comments:
"We are still very, very early in the life cycle of AI," said AMD CEO Lisa Su at the presentation of the MI300X chip last June in San Francisco. "The total addressable market for data center AI accelerators will rise fivefold to more than US$150 billion in 2027."
"Our export controls on China are designed to massively slow down technology acquisition," said Thea D. Rozman Kendler, assistant commerce secretary for export administration last year.
"US actions against China regarding export control, investment screening and unilateral sanctions seriously hurt China's legitimate interests," Chinese President Xi Jinping reportedly said. "Suppressing China's science and technology is curbing China's high-quality development and depriving the Chinese people of their right to development."
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