AMD has taken a significant step forward in the AI market by securing export approval for its Instinct MI308 AI chips, a noteworthy alternative to NVIDIA’s H20 chips. This development comes amidst NVIDIA’s ongoing struggle to gain approval for its Blackwell AI chips in China.
AMD’s Strategic Move in the Chinese AI Market
While NVIDIA faces challenges in gaining a foothold in China, AMD has confidently announced its readiness to cater to the Chinese AI sector with the Instinct MI308 AI chip. In a recent earnings call, AMD’s CEO Lisa Su confirmed that the company has obtained licenses to export these chips, although the revenue from China will not be included in AMD’s Q4 guidance.
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.
Navigating Market Dynamics and Future Prospects
Although the exact specifications of the Instinct MI308 remain under wraps, available data suggests they are comparable to NVIDIA’s H20 AI accelerators, adhering to US export regulations. This advancement gives AMD a slight advantage in the Chinese AI landscape, especially since NVIDIA is encountering delays in acquiring H20 export licenses and facing resistance from Chinese authorities.
Uncertainty continues to cloud AMD’s potential market share in China, as its Q4 revenue guidance remains unaffected. With China’s emphasis on bolstering domestic solutions, both AMD and NVIDIA may remain sidelined unless a significant change emerges, which is not anticipated soon.