AMD has reportedly failed in an attempt to dumb down its AI chips to a level where Washington DC is happy for them to be exported to China.
Why China is losing the microchip war
A Bloomberg report on Tuesday cited people familiar with the matter as saying that AMD concocted an AI chip not far from its most sophisticated silicon in the hope that it would fall below the threshold at which US authorities would not allow exports to China without first granting a license.
Dumbing down chips into performance limbo is a common tactic among chip makers. While most are happy to comply with US sanctions, they also have an obligation to sell as much stuff as possible to keep shareholders happy. China is a colossal market – we know it has at least five million data center racks in production and more are coming online all the time – and this week the local market likely expanded, as Beijing outlined a plan to make AI a central part of its economic development strategy.
Creating products for China is therefore just good business.
