US officials have told Advanced Micro Devices Inc. that the artificial intelligence chip it tailored for the Chinese market is too powerful to sell without a license from the Commerce Department, throwing up a roadblock for the company as it tries to navigate Washington’s crackdown on exports of advanced technologies.
AMD had hoped to gain a green light from the Commerce Department to sell the AI processor to Chinese customers as it performs at a lower level than what AMD sells outside of China, according to people familiar with the situation, asking not to be identified because the matter is private. But US officials told AMD it must still obtain a license from Commerce’s Bureau of Industry and Security in order to sell it, the people said.