AMD has announced its intention to develop an artificial intelligence (AI) chip specifically for the Chinese market, in order to comply with U. S. export restrictions. The decision follows similar moves by rivals Nvidia and Intel. Lisa Su, CEO of AMD, emphasized the importance of the Chinese market and the company's commitment to abide by U. S. export controls. While ensuring compliance, AMD believes there is an opportunity to create AI solutions for Chinese customers seeking such products. Su highlighted the accelerator market, particularly the need for semiconductors to train large amounts of data for AI applications. AMD aims to increase production of its MI300 chip, positioning it as a competitor to Nvidia's graphics processing units used for AI training.

Although Nvidia currently dominates the market, AMD hopes to challenge its position with its latest chip. Earlier this year, the U. S. government restricted Nvidia from selling its A100 and H100 chips to China, prompting the company to modify the H100's specifications to comply with export curbs. Intel also developed a modified version of its Gaudi 2 AI chips for the Chinese market. China remains an attractive market for U. S. chipmakers, particularly in AI, where there are limited domestic alternatives to companies like Nvidia. AMD sees its MI300 AI chip as crucial to its success in competing against Nvidia, projecting significant growth in its data center business for the second half of the year. Su expects around a 50% growth rate compared to the first half, largely driven by the new AI chip.