(Bloomberg) — Advanced Micro Devices Inc. has hit a roadblock with the U.S. government trying to sell artificial intelligence chips made for the Chinese market, according to people familiar with the matter. It is said to be part of Washington’s crackdown on exports. .
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AMD was hoping to get permission from the Commerce Department to sell its AI processors to Chinese customers, said the people, who requested anonymity because the matter is private. The chips are less powerful than those AMD sells outside China and are designed to meet U.S. export regulations.
But U.S. officials told AMD the chip was still too powerful and would need a license from the Commerce Department’s Bureau of Industry and Security before it could be sold. AMD had no immediate comment, and the Bureau of Industry and Security declined to comment. It is not yet clear whether AMD has applied for a license.
The United States has worked to limit China’s access to cutting-edge semiconductors that can develop AI models and the tools used to make them, fearing that China would gain a military advantage. President Joe Biden’s administration announced the first set of export controls in 2022, tightening export controls last October to include more technology and potentially weakening bans on sales to intermediary countries. was suppressed.
Read more: Nvidia warns of product failure due to tougher U.S. chip regulations
Strict controls have restricted the sale of processors designed specifically for China by leading AI chipmaker Nvidia under an early version of export rules in 2022. The company has since developed new, less powerful products customized for the Chinese market to meet the 2023 regulations, and Commerce Secretary Gina Raimondo said she is reviewing the details of those components. Stated.
The 2022 US ban will prevent both Nvidia and AMD from selling their most powerful AI chips to China, forcing them to find workarounds. Nvidia quickly responded with a modified model with reduced performance, but AMD has not publicly discussed its efforts to develop new AI processors for the domestic market.
AMD had a smaller foothold in China’s AI chip industry than Nvidia, which had a large share of the market before the ban. AMD said it does not expect to be materially affected by the rule when the limit takes effect in 2022.
But AMD is now targeting the AI chip market more aggressively. In December, it announced its new MI300 lineup to compete with Nvidia’s processors. According to officials, the product for China is called “MI309.” It’s not clear which Chinese customers were looking to buy AMD AI chips. This factor could affect whether the company is able to secure a license if the chipmaker chooses to move forward.
Big Chinese tech companies like Tencent Holdings and Baidu have enough powerful chips from Nvidia (the kind currently subject to U.S. regulations) to advance the capabilities of their chatbots for another year or two. He said he was stockpiling it.
Meanwhile, Shenzhen-based Huawei Technologies Co. is developing its own AI semiconductor and chip manufacturing capabilities that could ultimately help Chinese companies fill the gap created by the U.S. ban. There is.
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