As per Bloomberg's news report, Advanced Micro Devices (AMD) encountered a challenge in its efforts to offer an artificial intelligence chip specifically designed for the Chinese market.

This move comes as Washington intensifies its scrutiny and crackdown on the export of advanced technologies to China.

Sources familiar with the matter revealed that AMD had sought approval from the US Commerce Department to sell the AI processor to China. This chip was specifically designed to comply with US export restrictions.

However, US officials have judged the chip's performance as still too powerful, despite it being lower compared to versions sold outside of China.

As a result, the company has been directed to acquire a license from the Commerce Department's Bureau of Industry and Security to move forward with the sale in China.

Despite efforts to ensure compliance, US officials insist that the processor needs additional scrutiny and control to prevent potential misuse or diversion for military purposes.

Reuters' requests for comment from both AMD and the Commerce Department were left unanswered at the time of reporting.

This development aligns with the broader measures implemented by the US government to restrict the transfer of advanced technologies to China, particularly those that could have military implications.

In October, the US revealed its intentions to cease shipments of highly advanced artificial intelligence chips, which encompass designs by Nvidia. This move is part of a strategic initiative aimed at thwarting Beijing's acquisition of state-of-the-art US technologies, which could potentially enhance its military prowess.

Image source: Bloomberg