AMD is producing a unique AI chip for China to comply with export controls

AMD is producing a unique AI chip for China to comply with export controls
AMD is producing a unique AI chip for China to comply with export controls

In a move that would put AMD in line with rivals Nvidia and Intel, AMD stated that it sees a chance to create an artificial intelligence processor exclusively for the Chinese market in order to comply with U.S. export restrictions.

The CEO of AMD, Lisa Su, stated in late-night earnings call that China is a “important” market and that AMD wants to fully comply with U.S. export regulations.

However, Su said, “We do believe there is an opportunity to develop products for our customer set in China that is looking for AI solutions and we do believe there is an opportunity to do so.” “As we think about certainly the accelerator market, our plan is to of course be fully compliant with U.S. export controls,” Su said.

The type of semiconductors needed to train massive volumes of data for artificial intelligence applications are called accelerator chips.

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As a competitor to Nvidia’s graphics processing units used for AI training, AMD is preparing to ramp up production of its MI300 processor. The market is dominated by Nvidia, but AMD hopes to compete with its newest CPU.

The U.S. government forbade Nvidia from selling its A100 and H100 processors to China earlier this year. One of the H100‘s main AI chips belongs to Nvidia. Nvidia made the decision to modify the H100‘s specifications in order to produce a chip that conformed with export restrictions.

For the Chinese market, Intel also produced a customized version of its Gaudi 2 AI chips.

Particularly in AI, where there are few domestic competitors to companies like Nvidia, China continues to be a lucrative market for American chipmakers.

Much depends on AMD’s MI300 AI chip as it attempts to compete with Nvidia. For the remainder of the year, the company anticipates that the chip will help it expand its data center business quickly.

According to Su, AMD expects its data center business to increase by about 50% in the second half of the year compared to the first, in part because of the new AI chip.

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