According to Wccftech, AMD disclosed during its Q3 earnings call that it has received U.S. export licenses for its China-specific Instinct MI308 AI chips. CEO Lisa Su confirmed the company now has “certainty” about its solution for the Chinese AI market. The MI308 chips are positioned as competitive alternatives to Nvidia’s H20 AI accelerators. However, AMD isn’t including any MI308 revenue in its Q4 guidance due to ongoing uncertainty. This development comes while Nvidia remains in deadlock over export approvals for its Blackwell AI chips. Chinese authorities are also showing hostility toward Nvidia’s technology stack, giving AMD a potential edge.
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<h2 id="amd-china-strategy”>AMD’s cautious China play
Here’s the thing about AMD’s approach: they’re being incredibly careful. They got the licenses, which is huge, but they’re not counting on the revenue yet. During the earnings call, Lisa Su basically said they’re still working with customers to understand the actual demand environment. That’s smart because the Chinese AI market is basically a minefield right now. Beijing is pushing hard for domestic solutions, and both U.S. chipmakers are essentially in the backseat until something changes.
What’s interesting is the timing. Nvidia has been trying to get its H20 chips approved for months, and they’re still waiting. Meanwhile, AMD swoops in and gets the green light for MI308. Now, we don’t know the exact specifications yet, but they’re likely performance-capped to comply with U.S. export controls. Still, having something approved is better than having nothing approved, right?
Why Nvidia is stuck
Nvidia’s situation is looking pretty rough. They’re dealing with a double whammy – export license delays plus Chinese government resistance to their tech stack. Chinese authorities apparently don’t want to become too dependent on Nvidia’s ecosystem. And when you combine that with the U.S. government’s reluctance to approve their latest chips, you’ve got a perfect storm.
Think about it from Beijing’s perspective. They’ve been burned before with supply chain issues. Now they’re pushing domestic alternatives like Huawei’s Ascend chips. But here’s the reality: Chinese companies still want the best AI hardware they can get, even if it’s performance-limited. That’s where AMD might sneak in and grab some market share while Nvidia is sidelined.
What this means for the AI chip war
This could be a temporary window for AMD to establish itself in China. If they can build relationships and prove their MI308 chips are viable alternatives, they might create some lasting partnerships. But let’s be real – neither U.S. company is going to dominate China’s AI market long-term. The political pressure for domestic solutions is just too strong.
The bigger question is whether this licensing approval signals a shift in U.S. policy. Are we seeing a more nuanced approach to China tech exports? Or is this just a one-off situation where AMD happened to have the right product at the right time? According to the earnings call transcript, AMD seems genuinely appreciative of the administration’s support. But they’re still being cautious about counting their chickens before they hatch.
For investors watching this space, the key takeaway is that AMD now has options in China that Nvidia doesn’t. It’s not a huge revenue driver yet, but it’s potential upside that Nvidia currently lacks. And in the competitive AI chip landscape, every advantage matters.
