Advanced Micro Devices hit a U.S. government roadblock in attempting to sell an artificial intelligence chip tailored for the Chinese market, according to people familiar with the matter, part of Washington’s crackdown on the export of advanced technologies to the country.
AMD had hoped to gain a green light from the Commerce Department to sell the AI processor to Chinese customers, according to the people, who asked not to be identified because the situation is private. The chip has lower performance than what AMD sells outside of China and was designed to meet U.S. export restrictions, they said.
But U.S. officials told AMD that the chip was still too powerful and that the company must obtain a license from Commerce’s Bureau of Industry and Security in order to sell it, the people said. AMD didn’t have an immediate comment, while the Bureau of Industry and Security declined to comment. It’s not yet clear whether AMD is applying for a license.