AMD Secures Export Licenses for China-Specific Instinct MI308 AI Chips, NVIDIA Stuck in Deadlock

In its recent Q3 earnings call, AMD revealed significant news regarding its Instinct MI308 AI chips, which are poised to emerge as formidable contenders against NVIDIA’s H20 AI offerings. The company has secured export approval for these advanced processors, marking a strategic step in its competitive landscape.

AMD’s Instinct MI308 AI Chips Set for China, While NVIDIA’s H20 Faces Challenges

As NVIDIA grapples with uncertainties surrounding the approval of its Blackwell AI chips for the Chinese market, AMD exudes confidence about its prospects. During the earnings call, CEO Lisa Su disclosed that the company is prepared to introduce the MI308 AI chip to Chinese consumers. Despite having obtained export licenses for these chips, AMD has chosen not to factor revenue from potential sales in China into its Q4 projections.

Sure, Joe. So look, it’s still a pretty dynamic situation with MI308. So that’s the reason that we did not include any MI308 revenue in the Q4 guide. We have received some licenses for MI308, so we’re appreciative of the administration supporting some licenses for MI308. We’re still working with our customers on the demand environment and sort of what the overall opportunity is.

While the precise specifications of the Instinct MI308 remain under wraps, preliminary information suggests they may align closely with NVIDIA’s H20 AI accelerators, subject to US export control regulations. This development places AMD at a strategic advantage, as NVIDIA has encountered delays in securing necessary export licenses for its technology and is facing challenges from Chinese regulatory authorities, which complicates its market presence in China.

Close-up of a powerful GPU chip with intricate design, emphasizing advanced technology and innovation. — Image Credits: AMD

AMD’s decision not to incorporate potential MI308 sales into its Q4 revenue outlook underscores the ongoing uncertainty regarding the Chinese market. With the Chinese government focusing on bolstering domestic solutions, both AMD and NVIDIA remain on the sidelines, waiting for significant breakthroughs that appear unlikely in the near future.

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