The United States has reportedly stalled Advanced Micro Devices’ bid to sell an artificial intelligence chip with lower performance capability to China.
Citing people familiar with the matter, Bloomberg reported that U.S. officials informed AMD that the AI processor was still classified as powerful.
They advised the chipmaker to secure a license from the Department of Commerce’s Bureau of Industry and Security in order to sell the processor.
Bloomberg said it is unclear if AMD has submitted an export license application for the AI chip, adding that the company did not immediately respond to a request for comment.
The U.S. decision aligns with Washington’s recent efforts to stop the entry of advanced AI chips into China that could be used for defense applications.
The U.S. government introduced new export rules in October that prohibited the export of powerful Nvidia and AMD chips to China.
Reuters reported the action led to Nvidia recording over a 50 percent decline in its fourth quarter results for fiscal year 2023, which the company attributed to dipping revenues from China.